# CS1.yaml Model definition file for the consumption/saving model with borrowing constraint # Copyright (C) 2011-2012 Christophe Gouel # Licensed under the Expat license, see LICENSE.txt declarations: states: [X] controls: [C] expectations: [E] shocks: [Y] parameters: [r, delta, rho] equations: arbitrage: - E*(1+r)/(1+delta)-C^(-rho) | -inf <= C <= X transition: - X = (1+r)*(X(-1)-C(-1))+Y expectation: - E = C(1)^(-rho) calibration: parameters: r : 0.05 delta : 0.1 rho : 2 steady_state: X : 100 C : 100 E : C^(-rho)