68 lines
1.5 KiB
Modula-2
68 lines
1.5 KiB
Modula-2
/*
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* This file studies the transition to steady state in a simple Solow model with Cobb-Douglass production function
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*
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* This implementation was written by Johannes Pfeifer.
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* Please note that the following copyright notice only applies to this Dynare
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* implementation of the model.
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*/
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/*
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* Copyright © 2014 Johannes Pfeifer
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*
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* This is free software: you can redistribute it and/or modify
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* it under the terms of the GNU General Public License as published by
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* the Free Software Foundation, either version 3 of the License, or
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* (at your option) any later version.
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*
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* It is distributed in the hope that it will be useful,
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* but WITHOUT ANY WARRANTY; without even the implied warranty of
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* MERCHANTABILITY or FITNESS FOR A PARTICULAR PURPOSE. See the
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* GNU General Public License for more details.
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*
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* For a copy of the GNU General Public License,
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* see <https://www.gnu.org/licenses/>.
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*/
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var c k y invest;
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predetermined_variables k;
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parameters s alpha delta n g;
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s=0.2;
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alpha=0.3;
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delta=0.1;
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n=0.01;
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g=0.02;
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g_initial=0.02;
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model;
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(1+n+g+n*g)*k(+1)=(1-delta)*k+invest;
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invest+c=y;
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c=(1-s)*y;
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y=k^alpha;
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end;
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%set initial condition to 90% of steady state value
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initval;
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k=0.9*((delta+n+g+n*g)/s)^(1/(alpha-1));
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y=k^alpha;
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c=(1-s)*y;
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invest=y-c;
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end;
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%set terminal condition to steady state value
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endval;
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k=((delta+n+g+n*g)/s)^(1/(alpha-1));
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y=k^alpha;
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c=(1-s)*y;
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invest=y-c;
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end;
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resid;
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steady;
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perfect_foresight_setup(periods=200);
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perfect_foresight_solver(solve_algo=4);
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rplot k;
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