%
% ex8 is a matlab file that solves
% for the solutions of the rbc model
%

% ----- save output to file ----- %

diary ex8.mout
diary off
delete ex8.mout
diary ex8.mout

% ----- display date and time of computation ----- %

%format long
date
time0 = clock;

% ----- define the parameters ----- %

psi      = .7/.3;
alpha    = 0.40;
delta    = 0.025;
beta     = 0.98;
thetabar = 1;
phi      = 0.95;

% ----- define steady states ----- %

cbar = 0.8248;
nbar = 0.2480;
kbar = 9.3177;

% ----- define parameters for solvem.m ----- %

% ---- matrices for resource constraints and intratemporal euler (2nd row intra) ---- %

AA = [-kbar; ...
        0] ;

BB = [(alpha)*thetabar*kbar^alpha*nbar^(1-alpha)+(1-delta)*kbar; ...
      -1/cbar*(1-alpha)*alpha*thetabar*kbar^alpha*nbar^(-alpha)];

CC = [-cbar, (1-alpha)*thetabar*kbar^alpha*nbar^(1-alpha); ...
        1/cbar*(1-alpha)*kbar^alpha*nbar^(-alpha), ... 
         psi*((1-nbar)^-2)*nbar-1/cbar*(1-alpha)*(-alpha)*thetabar*kbar^alpha*nbar^(-alpha) ];

DD = [thetabar*kbar^alpha*nbar^(1-alpha); ...
       -1/cbar*(1-alpha)*thetabar*kbar^alpha*nbar^(-alpha)];


% ---- matrices for intertemporal eulers ---- %

FF = [0];

GG = [-beta*1/cbar*(thetabar*alpha*(alpha-1)*kbar^(alpha-1)*nbar^(1-alpha))];

HH = [0];

JJ = [beta*1/cbar*(thetabar*alpha*kbar^(alpha-1)*nbar^(1-alpha)+(1-delta)), ...
       -beta*1/cbar*(thetabar*alpha*(1-alpha)*kbar^(alpha-1)*nbar^(1-alpha)) ];
       
KK = [-1/cbar, 0] ;        

LL = [-beta*1/cbar*(thetabar*alpha*kbar^(alpha-1)*nbar^(1-alpha)+(1-delta)) ];

MM = [0 ]; 


% ---- matrices for pure exogenous state  ---- %

NN = [phi] ;


% ----- solve for solution using muck ----- %


[PP,QQ,RR,SS] = solvem(AA,BB,CC,DD,FF,GG,HH,JJ,KK,LL,MM,NN)


% ----- exit ----- %

comptime = etime(clock, time0)
diary off