*
* CASSKOOPMANS.RPF
* RATS Version 8, Reference Manual, Example from DSGE
*
dec series c lambda k
dec real u0 u1 f0 beta
*
frml(identity) f1 = u0-u1*c-lambda
frml(identity) f2 = f0*lambda-1.0/beta*lambda{1}
frml(identity) f3 = f0*k{1}-k-c{1}
*
* Set parameters of the model
*
compute beta=.95,f0=1.3,u0=1.0,u1=0.2
*
group casskoopmans f1 f2 f3
*
* Because the model is linear, there's no need to compute an expansion
* point to get the state space representation; it's being done here to
* get the steady state so create the simulation scenarios.
*
dsge(expand=linear,steadystate=ss,a=a,z=z,model=casskoopmans) c k lambda
disp "Steady State"
disp "Consumption" @20 ss(1)
disp "Capital" @20 ss(2)
*
* Starting consumption below the steady state
*
dlm(x0=||3.0,17.0,u0-u1*3.0||,a=a,z=z,presample=x1) 1 20 xstates
set c 1 20 = xstates(t)(1)
set k 1 20 = xstates(t)(2)
spgraph(vfields=2,footer="Initial consumption below steady state")
graph(hlabel="Consumption")
# c
graph(hlabel="Capital")
# k
spgraph(done)
*
* Starting consumption above the steady state
*
dlm(x0=||6.0,17.0,u0-u1*6.0||,a=a,z=z,presample=x1) 1 20 xstates
set c 1 20 = xstates(t)(1)
set k 1 20 = xstates(t)(2)
spgraph(vfields=2,footer="Initial consumption above steady state")
graph(hlabel="Consumption")
# c
graph(hlabel="Capital")
# k
spgraph(done)
*
* Initial capital above the steady state
*
dlm(x0=||5.0,20.0,u0-u1*3.0||,a=a,z=z,presample=x1) 1 20 xstates
set c 1 20 = xstates(t)(1)
set k 1 20 = xstates(t)(2)
spgraph(vfields=2,footer="Initial capital above steady state")
graph(hlabel="Consumption")
# c
graph(hlabel="Capital")
# k
spgraph(done)