# Deterministic growth model with habit formation, expressed so solution will be in terms of logs

states:
z, k
end

jumps:
c, ce
end

shocks:
end

parameters:
β = 0.99
σ = 1.1
γ = 0.8
δ = 0.025
α = 0.30
ρ = 0.8
end

solvers: Any

equations:
exp(k(+1)) = (1.0 - δ)*exp(k) + exp(z)*exp(k)^α - exp(c)
(exp(c) - γ*exp(c(-1)))^(-σ) = β*ce(+1)
ce = (exp(c) - γ*exp(c(-1)))^(-σ)*(1.0 - δ + α*exp(z)*exp(k)^(α - 1.0))
z(+1) = ρ*z
end
