%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
%%% Give initial numbers %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%

beta=0.9683;  % real interest rate
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
theta=3;      %labor elasticity in GHH utility function
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
sigma=2.61;   %risk aversion parameter by Ostry and Reinhart (1992)
deltax=0.1;   %depreciation rate
deltan=0.1;   %depreciation rate
etax=10;      %elasticity of adjustment cost
etan=10;      %elasticity of adjustment cost
gamma=1/4;    %1.07; %OR (1992)=0.93=1/1.07 elasticity of substitution in consumption function
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
pphi=0.6;     %?????bond holding adjustment costs mobile capital=0.0001; limited=0.2
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
bx=0.10;      %0.2 consumption share  by Kouparisas 
bm=0.15;      %0.2 consumption share  by Kouparisas
bn=1-bx-bm;   %consumption share  by Kouparisas
omega=0.429;  %labor share in production x by Mendoza (1995)
a=0.50;       %0.55 capital share against imported intermediate good in production x by Ayhan (JIE)
z=1.35;       %elasticity b/w capital and imported intermediate good in production x by Ayhan (JIE)
alpha1=0.38;  %0.38 labor share in yn
alpha3=0.4;   %Capital share in yn
alpha2=1-alpha1-alpha3; %land share in production n
px=1;

%given values
lyn=0.05;     %initial share of land as percentage of yn;
gyn=0.17;     %gov spending on nontraded good as percent of yn (Gn/yn)
fyx=0.20;     %foreign transfers as percetage of pxyx
nyx=-0.26;    %net export share (nx/px*yx)
r=1/beta-1;

% shock process (all 7 shocks have AR(1) presentation)

%persistence of shocks
rhox = 0.60; %%Hideaki%%
rhon = 0.80; %%Hideaki%%
rhor = 0.81; %%Hideaki%%
rhof = 0;    %%Hideaki%%
rhog = 0.84; %%Hideaki%%
rhopx= 0.75; %%Hideaki%%
rholn= 0;    %%Hideaki%%

% sd of shocks--needs to be estimated later
ssigmaax= 0.064;
ssigmaan= 0.023;
ssigmar=  0.0175;
ssigmag=  0.148;
ssigmapx= 0.081;

% if shocks are nulled, activate the followings:
%ssigmaax= 1e-10;
%ssigmaan= 1e-10;
%ssigmar=  1e-10;
ssigmaf=  1e-10; 
%ssigmag=  1e-10; 
%ssigmapx= 1e-10; 
ssigmal=  1e-10;

% corr of shocks (only among ax, an, r, g, px)-total 10--also needs to be estimated
coraxan =  0.162;
coraxr  =  0.15;
coraxg  =  0.145;
coraxpx = -0.021;
coranr  = -0.02;
corang  = -0.033;
coranpx = -0.148;
corrg   =  0.01;
corrpx  = -0.05;
corgpx  =  0.034;

% if correlations are nulled, activate the followings:
%coraxan =  0%0;
%coraxr  =  0%0;
%coraxg  =  0%0;
%coraxpx =  0%0;
%coranr  =  0%0;
%corang  =  0%0;
%coranpx =  0%0;
%corrg   =  0%0;
%corrpx  =  0%0;
%corgpx  =  0%0;