// Matching model

var n, g, v, c, k, r, u, p, y, varz;
varexo e;

parameters bet, alpha, depr, eta, psi, sigmae, phi0, phi1, cost, wage, rhox;

bet =0.96;
alpha=0.36;
depr=0.025;
eta=1;
psi=0.95;
sigmae=0.00712;
phi0=0.46097875503029;
wage=1.48728423095648;
phi1=0.5;
cost=0.7;
rhox=0.03;


model;
n=(1-rhox)*n(-1)+phi0*u^phi1*v^(1-phi1);
g=bet*(p(+1)+(1-rhox)*g(+1));
phi0*(u/v)^phi1*g=cost;
c+k+cost*v=y+(1-depr)*k(-1);
c^(-eta)=bet*(c(+1)^(-eta)*(r(+1)+1-depr));
r=alpha*exp(varz)*(k(-1)/n(-1))^(alpha-1);
u=1-n(-1);
p=(1-alpha)*exp(varz)*(k(-1)/n(-1))^alpha-wage;
y=exp(varz)*k(-1)^alpha*n(-1)^(1-alpha);
varz=psi*varz(-1)+e;
end;

initval;
n = 0.9589;
g = 2.300586;
v = 0.0947;
c = 2.1417;
k = 13.3703;
r = 0.06666;
u = 0.0411;
p = 0.1653;
y = 2.4760;
varz = 0;
end;


shocks;
var e = sigmae^2;
end;

stoch_simul(order=1,hp_filter=1600);