MODEL> REALC2

ENDOG>  PI      0   _DATA
        F       0   _DATA

        REALC   0   _NOTD
        CONTR   0   _NOTD
        CSHOCK  0   _NOTD
        INDEX   0   _NOTD
        FSHOCK  0   _NOTD
        PISTAR  0   _NOTD
        PISHOCK 0   _NOTD
        RHO     0   _NOTD
        ONE     0   _DTRM

EQUATION> PI
EQTYPE> IMPOSED
EQ>       PI = INDEX - LAG(INDEX,1)

EQUATION> F
EQTYPE> IMPOSED
EQ>       F - LAG(F,1) = DF1*(LAG(F,1)-LAG(F,2))
               +  ALPHAP  *INDEX
               +  ALPHAPI *(PI - PISTAR) 
               +  ALPHADPI*(PI - LAG(PI,1)) 
               +  FSHOCK

EQUATION> CONTR
EQTYPE> IMPOSED
EQ>       REALC = CONTR - INDEX

EQUATION> INDEX
EQTYPE> IMPOSED
EQ>       INDEX = .5*(CONTR + LAG(CONTR,1))

EQUATION> REALC
EQTYPE> IMPOSED
EQ>       CONTR - INDEX  = .5 * ( LAG(CONTR,1) -  LAG(INDEX,1))
                          + .5 * (LEAD(CONTR,1) - LEAD(INDEX,1))
                  - CRHO * (RHO - RHOBAR*ONE) + CSHOCK

EQUATION> CSHOCK
EQTYPE> STOCH
EQ>       CSHOCK = 0*ONE

EQUATION> FSHOCK
EQTYPE> STOCH
EQ>       FSHOCK = 0*ONE

EQUATION> PISTAR
EQTYPE> IMPOSED
EQ>       PISTAR = LAG(PISTAR,1) + PISHOCK

EQUATION> PISHOCK
EQTYPE> IMPOSED
EQ>       PISHOCK = 0*ONE

EQUATION> RHO
EQTYPE> IMPOSED
EQ>        RHO = (1-MU)*LEAD(RHO,1) + MU*(F - LEAD(PI,1))

EQUATION> ONE
EQTYPE> IMPOSED
EQ>       ONE = LAG(ONE,1)

END

