44 lines
904 B
Modula-2
44 lines
904 B
Modula-2
// this is a file trying to replicate example1.mod as optimization of a social planner
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// it serves also as an example combining +2 lead and optimal policy
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var Y, C, K, A, H, B;
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varexo EPS, NU;
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parameters rho, beta, alpha, delta, theta, psi, tau;
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alpha = 0.36;
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rho = 0.95;
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tau = 0.025;
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beta = 1/(1.03^0.25);
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delta = 0.025;
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psi = 0;
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theta = 2.95;
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planner_objective log(C)-theta*H^(1+psi)/(1+psi);
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planner_discount beta;
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model;
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//Y = exp(A)*K^alpha*H^(1-alpha);
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Y = exp(A)*exp(A(+1))*exp(A(+2))*K^alpha*H^(1-alpha);
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K = exp(B(-1))*(Y(-1)-C(-1)) + (1-delta)*K(-1);
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A = rho*A(-1) + tau*B(-1) + EPS;
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B = tau*A(-1) + rho*B(-1) + NU;
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end;
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initval;
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A = 0;
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B = 0;
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H = ((1-alpha)/(theta*(1-(delta*alpha)/(1/beta-1+delta))))^(1/(1+psi));
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Y = (alpha/(1/beta-1+delta))^(alpha/(1-alpha))*H;
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K = alpha/(1/beta-1+delta)*Y;
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C = Y - delta*K;
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end;
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vcov = [
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0.0002 0.00005;
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0.00005 0.0001
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];
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order = 2;
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