50 lines
1.1 KiB
Modula-2
50 lines
1.1 KiB
Modula-2
// Example that triggers homotopy in perfect foresight simulation.
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var Consumption, Capital, LoggedProductivity;
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varexo LoggedProductivityInnovation;
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parameters beta, alpha, delta, rho;
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beta = .985;
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alpha = 1/3;
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delta = alpha/10;
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rho = .9;
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model;
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[name='Euler equation'] // This is an equation tag!
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1/Consumption = beta/Consumption(1)*(alpha*exp(LoggedProductivity(1))*Capital^(alpha-1)+1-delta);
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[name='Physical capital stock law of motion']
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Capital = exp(LoggedProductivity)*Capital(-1)^alpha+(1-delta)*Capital(-1)-Consumption;
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[name='Logged productivity law of motion']
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LoggedProductivity = rho*LoggedProductivity(-1)+LoggedProductivityInnovation;
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end;
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steady_state_model;
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LoggedProductivity = LoggedProductivityInnovation/(1-rho);
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Capital = (exp(LoggedProductivity)*alpha/(1/beta-1+delta))^(1/(1-alpha));
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Consumption = exp(LoggedProductivity)*Capital^alpha-delta*Capital;
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end;
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set_time(1Q1);
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initval;
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LoggedProductivityInnovation = 0;
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LoggedProductivity = 10;
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Capital = 1;
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end;
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endval;
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LoggedProductivityInnovation = 0;
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end;
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steady;
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simul(periods=200);
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plot(Simulated_time_series.Capital(1Q1:25Q4));
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