# GRO2.yaml Model definition file for the stochastic growth model with irreversible investment # Copyright (C) 2011-2012 Christophe Gouel # Licensed under the Expat license, see LICENSE.txt declarations: states: [K, Z] controls: [C, I, Mu] expectations: [E] shocks: [Epsilon] parameters: [a, tau, delta, beta, rho, alpha] equations: arbitrage: - C+I = a*exp(Z)*K^alpha | -inf <= C <= inf - C^(-tau)+Mu | 0 <= I <= inf - Mu+beta*E = 0 | -inf <= Mu <= inf transition: - K = (1-delta)*K(-1)+I(-1) - Z = rho*Z(-1)+Epsilon expectation: - E = C(1)^(-tau)*a*alpha*exp(Z(1))*K(1)^(alpha-1)-Mu(1)*(1-delta) calibration: parameters: tau : 1 delta : 0.0196 beta : 0.95 rho : 0.9 alpha : 0.3 a : (1/beta-1+delta)/alpha steady_state: Z : 0 K : 1 C : a-delta I : 0 Mu : 0 E : C^(-tau)/beta