' macro for shocking real wage ' ' generates charts 3 and 4 in the paper ' create a 1950 2050 smpl 1950 2050 ' PARAMETERS ' consumption function genr a1 = 0.8 genr a1d1 = 0.2 genr a1d2 = 0.2 genr a2 = 0.025 genr a3 = 0.08 ' investment function genr gr0 = -0.05 genr gr1 = 2 genr gr2 = 1 genr gr3 = 0.2 genr gr4 = 0.4 ' full capacity production genr lambda = 1.3 ' Discouraged workers effect genr parlf=0.4 ' retained profits genr ret=0.10 ' mark-up genr ro = 0.4 ' tax rates genr dtrate = 0.15 genr tau = 0.10 genr tfrate = 0.40 ' expectations genr thetagr = 0.75 genr thetap = 0.75 genr thetape = 0.75 genr thetapr = 0.75 genr thetare = 0.75 ' Cash genr hhpar = 0.20 genr hbpar = 0.25 ' assets genr vpar1 = 0.4 genr vpar2 = 0.25 ' share of investment financed by issuing equities genr x = 0.25 ' share of loans in cash genr lcpar = 0.4 ' Parameters in asset demand function genr lam00 = 0.24 genr lam01 = 0.30 genr lam02 = 0.25 genr lam03 = 0.01 genr lam04 = 0.10 genr lam10 = 0.43 genr lam11 = 0.45 genr lam12 = 0.25 genr lam13 = 0.01 genr lam14 = 0.25 genr pokun=3 genr ngr0 = 0.05 genr rb = 0.03 genr rc = 0.025 genr rl = 0.03 genr rm = 0.02 genr rrc=0.025 genr rrb=0.03 ' Banks spreads on central bank interest rate genr spread1 = 0.005 genr spread2 = -0.005 ' Real exogenous genr gk = 800 genr prod = 1 genr wage = 1 genr popg = 0.0225 genr p = (1+ro)*wage/(prod*(1-tau)) genr pe = 5 genr sk = 2.66*gk genr s = sk*p genr consk = 0.55*sk genr cons = consk*p genr ik = sk - gk - consk genr i = ik*p genr Yk = 0.68*sk genr Y = Yk*p genr v = 2*S genr vk = v/p genr gd = 0.086*Y genr b = 0.36*v genr bh = 0.01*v genr bb = 0.17*v genr bc = 0.18*v genr e = 0.31*v/pe genr l = 0.33*v genr lc = 0.26*v genr m = v-bh-e*pe genr fu = 0.05*s genr gry=0.02 genr grye=gry genr infl = 0 genr infle = infl genr pee = pe genr K = 1*S genr kk=K/p genr lev=L/K genr q=(pe*E)/K genr sfc=lambda*KK genr u=sk/sfc genr vke=vk genr prodg = 0.02 genr prodg0 = prodg genr shockprod = 0 genr n=sk/prod genr lf = n/0.95 genr un=lf-n genr ur=un/lf genr prodge=prodg genr pege = 0 genr wshare = 1 genr rfc=fu/k(-1) genr inflw=infl+prodg genr inflw=0.02 genr inflw0=0 genr ro0=ro genr parlc = 0.2 genr Lc0=Lc genr parbb = 0.4 genr Bb0=bb genr W = wage*N genr FT = ro*W genr TF = tfrate*FT genr FD = (1-ret)*(FT-rl(-1)*L(-1)-TF) genr CG = (pe-pe(-1))*E(-1) genr CGE=CG genr re=(FD+CGE)/(pe(-1)*e(-1)) genr ree = re genr rree = (1+ree)/(1+infle)-1 genr rrm = (1+rm)/(1+infle)-1 genr rrl = (1+rl)/(1+infle)-1 genr unorm = 0.75 genr bb=0 genr FB = rl(-1)*L(-1)+rb(-1)*Bb(-1) -(rm(-1)*M(-1)+rc(-1)*Lc(-1)) genr yh=w+rm(-1)*m(-1) + fd + fb + rb(-1)*bh(-1) genr grg = 0.03 genr grg0 = 0 delete *_model model a_model a_model.append SK = CONSK + IK + GK a_model.append S = SK*p a_model.append CONS = CONSK*p a_model.append I = IK*p a_model.append G = GK*p a_model.append FT = ro*W a_model.append YH = W+FD+rm(-1)*M(-1)+FB+rb(-1)*Bh(-1) a_model.append Y = YH-DT a_model.append YK = Y/p a_model.append Sh = Y - CONS a_model.append FU = FT - rl(-1)*L(-1) - FD-TF a_model.append FB = rl(-1)*L(-1)+rb(-1)*Bb(-1) -(rm(-1)*M(-1)+rc(-1)*Lc(-1)) a_model.append FC = rc(-1)*Lc(-1) + rb(-1)*Bc(-1) a_model.append GD = (G+rb(-1)*Bh(-1)+rb(-1)*Bb(-1)+rb(-1)*Bc(-1))-(IT+DT+TF+Fc) a_model.append IK = KK-KK(-1) a_model.append KK = (1+gr)*KK(-1) a_model.append K = KK*p a_model.append lev = L/K a_model.append q = (pe*E)/K a_model.append u = sk/sfc a_model.append gry = sk/sk(-1)-1 a_model.append infl = p/p(-1)-1 a_model.append CG = (pe-pe(-1))*E(-1) a_model.append prod = prod(-1)*(1+prodg) a_model.append wage = wage(-1)*(1+inflw) a_model.append re=(FD+CGE)/(pe(-1)*e(-1)) a_model.append ree=re+thetare*(ree(-1)-re(-1)) a_model.append rree = (1+ree)/(1+infle)-1 a_model.append p = (1+ro)*wage/(prod*(1-tau)) a_model.append W = wage*N a_model.append N = SK/prod a_model.append IT = tau*S a_model.append DT = dtrate*YH a_model.append TF = tfrate*FT a_model.append FD = (1-ret)*(FT-rl(-1)*L(-1)-TF) a_model.append CONSK = a1*(1-dtrate)*(W+rm(-1)*M(-1)+rb(-1)*Bh(-1))/p+a1d1*(1-dtrate)*(fb/p) +a1d2*(1-dtrate)*(fd/p) + a2*VK(-1) + a3*(CGKE-infle*vk(-1)/(1+infle)) a_model.append gr = gr0+gr1*FU(-1)/K(-2)-gr2*rrl(-1)*lev(-1)+gr3*q(-1)+gr4*(u(-1)-unorm) a_model.append sfc = lambda*KK a_model.append gk = gk(-1)*(1+grye+grg0) a_model.append UR = ((ur(-1)-(gry-ngr0)/pokun)<0)*0+((ur(-1)-(gry-ngr0)/pokun)>0)*(ur(-1)-(gry-ngr0)/pokun) a_model.append V = V(-1) + Y -CONS +CG a_model.append VK = V/p a_model.append grye = gry(-1) + thetagr*(grye(-1) - gry(-1)) a_model.append infle = infl(-1) + thetap*(infle(-1)-infl(-1)) a_model.append prodge = prodg(-1) + thetapr*(prodge(-1)-prodg(-1)) a_model.append YKE = YK(-1)*(1+grye) a_model.append YE = Y(-1)*(1+grye)*(1+infle) a_model.append VE = V(-1) + YE-CONS +CGE a_model.append pee = pe(-1)*(1+pege) a_model.append pege = pe(-1)/pe(-2)-1 + thetape*(pege(-1)-(pe(-1)/pe(-2)-1)) a_model.append CGKE = (pee-pe(-1))*E(-1)/(p(-1)*(1+infle)) a_model.append CGE = (pee-pe(-1))*E(-1) a_model.append ur1=(ur<=0)*0+(ur>=0.2)*0.2+(ur>0)*(ur<0.2)*ur a_model.append wshare = 2-@sqrt(ur1/0.05) a_model.append B = B(-1) + GD a_model.append BH = vpar1*(VE-HH) a_model.append pe = (vpar2*(VE-HH)-x*(I-Fu))/E(-1) a_model.append M = V-HH-BH-E*pe a_model.append HH = hhpar*CONS a_model.append HB = hbpar*M a_model.append E = E(-1)+x*(I-Fu)/pe a_model.append L=L(-1)+I-FU-pe*(E-E(-1)) a_model.append Bc = B-Bh-Bb a_model.append vpar2 = lam00-lam01*rrm+lam02*rree-lam03*(Y/Ve)-lam04*rrb a_model.append vpar1 = lam10-lam11*rrm-lam12*rree-lam13*(Y/Ve)+lam14*rrb a_model.append rc = (1+rrc)*(1+infl*(1-thetap)+thetap*infle)-1 a_model.append rb = (1+rrb)*(1+infl*(1-thetap)+thetap*infle)-1 a_model.append prodg = prodg0+shockprod a_model.append rl = rc+spread1 a_model.append rm = rc+spread2 a_model.append rrm = (1+rm)/(1+infle)-1 a_model.append rfc = fu/k(-1) a_model.append rrl = (1+rl)/(1+infle)-1 a_model.append inflw = infle+prodge+inflw0 a_model.append Lc0 = Hh+Hb-Bc a_model.append Lc = Bb + L + Hb - M a_model.scenario "Baseline" a_model.solve genr yt_0=cons_0+g_0+i_0 genr yd_0=w_0+rm_0(-1)*m_0(-1) + fd_0 + fb_0 + rb_0(-1)*bh_0(-1)-dt_0 genr yg_0 = dt_0 + tf_0 + it_0 + fc_0 - rb_0(-1)*b_0(-1) smpl 1990 1990 inflw0 = +0.05 smpl 1990 2050 ro = 0.33458 smpl 1950 2050 a_model.scenario "Scenario 1" a_model.solve genr yt_1=cons_1+g_1+i_1 genr yd_1=w_1+rm_1(-1)*m_1(-1) + fd_1 + fb_1 + rb_1(-1)*bh_1(-1)-dt_1 genr yg_1 = dt_1 + tf_1 + it_1 + fc_1 - rb_1(-1)*b_1(-1) group data0 (pe_1*e_1/v_1)/(pe_0*e_0/v_0) (bh_1/v_1)/(bh_0/v_0) (m_1/v_1)/(m_0/v_0) group data1 rfc_1/rfc_0 q_1/q_0 rrl_1*lev_1/(rrl_0*lev_0) u_1/u_0 group data2 gry_1-gry_0 gr_1-gr_0 consk_1/consk_1(-1)-(consk_0/consk_0(-1)) gk_1/gk_1(-1)-(gk_0/gk_0(-1)) group data3 infl_1-infl_0 group data4 ur_1-ur_0 group data5 (yd_1/yt_1)/(yd_0/yt_0) (yg_1/yt_1)/(yg_0/yt_0) smpl 1989 2010 show data1 show data2