%Model Description++++++++++++++++++++++++++++++++++
This is just a standard MRBC model, as you can see.


%Model Information++++++++++++++++++++++++++++++++++
Name = CIA Model;



%Parameters+++++++++++++++++++++++++++++++++++++++++
z_bar   =                 1.0;
n_bar   =                 1/3;
l_bar   =             1-n_bar;
nl_bar  =         n_bar/l_bar;
alpha   =                0.36;
delta   =               0.019;
beta    =               0.989;
PHI     =                 2.0;
eta     =                 1.0;
a       =                0.95;
b       =              1/0.39;
THETA   =              1.0125;
rho_z   =                0.95;
sigma_z =                 0.7;
g_bar   =              1.0125;
sigma_m =                0.89;
rho_g   =                 0.5;
xi      =               -0.15;
sigma_v =    ((1-rho_g**2)*(sigma_m)**2-(xi**2/(1-rho_z**2))*sigma_z**2)**(0.5);


%Variable Vectors++++++++++++++++++++++++++++++++++++
[1]  k(t):capital{endo}[log,hp]
[2]  m(t):money{endo}[log,hp]
[3]  y(t):output{con}[log,hp]
[4]  c(t):consumption{con}[log,hp]
[5]  n(t):labour{con}[log,hp]
[6]  lam(t):lambda{con}[log,hp]
[7]  i(t):nom_rate{con}
[8]  r(t):real_rate{con}
[9]  inf(t):inflation{con}[log,hp]
[10] inv(t):investment{con}[log,hp]
[11] z(t):epsz(t):productivity{exo}[log,hp]
[12] g(t):epsg(t):mgrowth{exo}[log,hp]


%Boundary Conditions+++++++++++++++++++++++++++++++++
None


%Variable Substitution Non-Linear System+++++++++++++
None


%Non-Linear First-Order Conditions+++++++++++++++++++
None


%Manual entry of sstate non-linear system++++++++++++
None


%Steady States [Closed Form]++++++++++++++++++++++++++
r_bar     = 1/beta;
yk_bar    = (r_bar - 1 + delta)/alpha;
ck_bar    = yk_bar - delta;
nk_bar    = (yk_bar)**(1/(1-alpha));
kn_bar    = 1/nk_bar;
k_bar     = kn_bar*n_bar;
c_bar     = ck_bar*k_bar;
inf_bar   = g_bar - 1;
nl_bar    = n_bar/(1.0 - n_bar);
yn_bar    = yk_bar/(1.0 - n_bar);
y_bar     = yn_bar*n_bar;
i_bar     = r_bar*THETA;
in_bar     = i_bar-1;
mk_bar    = (ck_bar)*(a*i_bar/((1-a)*(1+i_bar)))**(-1/b);
m_bar     = mk_bar*k_bar;
mc_bar    = mk_bar/ck_bar;
X         = a*(ck_bar**(1-b))+(1-a)*(mk_bar**(1-b));
XX        = (PHI*a*((ck_bar)**(1-b))+(1-a)*b*((mk_bar)**(1-b)))/X;
XM        = (1-a)*(mk_bar**(1-b))/X;
gamma     = 1/(1+((1-a)/a)*((mc_bar)**(1-b)));
A         = gamma*PHI+(1-gamma)*b;
B         = (b - PHI)*(1-gamma);

%Steady State Non-Linear System [Manual]+++++++++++++
None

%Log-Linearized Model Equations++++++++++++++++++++++
[1]   k(t)=(1-delta)*k(t-1)+yk_bar*y(t)-ck_bar*m(t);
[2]   y(t)=alpha*k(t-1)+(1-alpha)*n(t)+z(t);
[3]   m(t)=m(t-1)-inf(t)+g(t);
[4]   m(t)=c(t);
[5]   (1+eta*nl_bar)*n(t)=y(t)+lam(t);
[6]   ((alpha+eta*nl_bar)+alpha*(1-alpha)*yk_bar)*...
      r(t)=alpha*(1-alpha)*yk_bar*lam(t)...
      +alpha*yk_bar*rho_z*z(t)-alpha*yk_bar*eta*nl_bar*k(t);
[7]   lam(t)=beta*(1-PHI)*r(t)-beta*(1-PHI)...
      *i(t)-PHI*beta*m(t)...
      -beta*PHI*xi*z(t)-PHI*beta*rho_g*g(t);
[8]   delta*inv(t)=k(t)-(1-delta)*k(t-1);
[9]   E(t)|lam(t+1)=lam(t)-r(t);
[10]  E(t)|inf(t+1)=i(t)-r(t);
[11]  z(t+1)=rho_z*z(t)+epsz(t+1);
[12]  g(t+1)=rho_g*g(t)+xi*z(t)+epsg(t+1);


%Variance-Covariance Matrix++++++++++++++++++++++++++
Sigma = [sigma_z**2 0;
         0 sigma_v**2];


%End Of Model File+++++++++++++++++++++++++++++++++++
