Variable Capital Utilization

var yy ii kk nn aa cc ww RR rr uu;
varexo e;
parameters alpha delta0 theta rhoa beta delta phi1 phi2 sigma_ea;
alpha = 1/3;
delta0 = 0.025;
theta = 1.75;
rhoa = 0.97;
beta = 0.99;
phi1 = 1/beta - (1-delta0);
phi2 = 0.01;
sigma_ea = 0.009;
delta = 0.025;
model;
exp(cc)^(-1) = beta*exp(cc(+1))^(-1)*(1+exp(rr));
exp(cc)^(-1) = theta*(1-exp(nn))^(-1)*((1-
alpha)*exp(aa)*exp(uu)^(alpha)*(exp(kk(-1))^(alpha)*exp(nn)^(-alpha)))^(-
1);
phi1+phi2*((uu)-1) = alpha*exp(aa)*exp(uu)^(alpha-1)*exp(kk(-1))^(alpha-
1)*exp(nn)^(1-alpha);
exp(cc)^(-1) = beta*exp(cc(+1))^(-
1)*(alpha*exp(aa(+1))*exp(uu)^(alpha)*exp(kk(+1))^(alpha-1)*exp(nn)^(1-
alpha)+(1-delta*exp(uu)));
exp(ww) = (1-alpha)*exp(aa)*exp(uu)^(alpha)*exp(kk(-
1))^(alpha)*exp(nn)^(-alpha);
exp(RR) = alpha*exp(aa)*exp(uu)^(alpha-1)*exp(kk(-1))^(alpha-
1)*exp(nn)^(1-alpha);
exp(yy) = exp(aa)*exp(uu)^(alpha)*exp(kk(-1))^(alpha)*exp(nn)^(1-alpha);
exp(yy) = exp(cc) + exp(ii);
exp(kk) = exp(aa)*exp(uu)^(alpha)*exp(kk(-1))^(alpha)*exp(nn)^(1-alpha)-
exp(cc)+(1-delta*exp(uu))*exp(kk(-1));
aa = rhoa*aa(-1) + e;
end;

initval;
kk = log(9.45);
yy = (3);
cc = log(0.77);
ii = log(0.2362);
aa = 0;
rr = (1/beta) - 1;
RR = ((1/beta) - (1-delta0));
ww = 1;
nn = 1/3;
uu = log(1);
end;
shocks;
var e = sigma_ea^2;
end;
steady;
stoch_simul(order=1,irf=40, hp_filter=1600) yy nn uu cc ii ww rr;