# Example two --- Stochastic growth model with partial parameterization

states:
cap, tech
end

jumps:
cons
end

shocks:
epsilon
end

parameters:
betta 
sigma = 1.1
delta = 0.025
alpha = 0.30
rho = 0.8
sd = 0.01
end

equations:
cap(+1) = (1.0 - delta)*cap + exp(tech)*cap^alpha - cons
cons^(-sigma) = betta*cons(+1)^(-sigma)*(1.0 - delta + alpha*exp(tech(+1))*cap(+1)^(alpha - 1.0))
tech(+1) = rho*tech + sd*epsilon
end

exp(cap(+1)) = (1.0 - delta)*exp(cap) + exp(tech)*exp(cap)^alpha - exp(cons)
exp(cons)^(-sigma) = betta*exp(cons(+1))^(-sigma)*(1.0 - delta + alpha*exp(tech(+1))*exp(cap(+1))^(alpha - 1.0))
tech(+1) = rho*tech + sd*epsilon
