# Example --- Aiyagari (1994) model

states:
k, l
end

jumps:
c, muc, lm, rbar, wbar
end

shocks:
ϵ
end

parameters:
β  = 0.96
σ  = 1.00
α  = 0.36
δ  = 0.08
ϕ  = 0.00 # Not sure yet what value to use here
ρ  = 0.60
σϵ = 0.20
lbar = 1.0
kbar
end

solvers: Projection

equations:

rbar = α*(kbar/lbar)^(α-1.0) - δ
wbar = (1.0-α)*(kbar/lbar)^(α)

c^(-σ) = muc
muc = lm + β*(1.0+rbar)*muc(+1)
c + k(+1) = wbar*lbar*exp(l) + (1.0+rbar)*k
lm*(k-ϕ) = 0.0
l(+1) = ρ*l + σϵ*sqrt(1.0-ρ^2)*ϵ
end