MODEL> FIRMVALUE

ENDOG>                                    
                    v     _NOTD
                    div   _DATA
                    e_    _NOTD
                    one   _DTRM


EQUATION> VALUE
EQTYPE> IMPOSED
EQ>     LEAD(v,3) = ((1+r)^3)*v - LEAD(div,1)

EQUATION> DIVIDEND
EQTYPE> IMPOSED
EQ>     div = (1-delta)*LAG(div,2) + e_


EQUATION >  E_
EQTYPE >    STOCH
EQ >        e_ = 0 * one

EQUATION >  ONE
EQTYPE >    IMPOSED
EQ >        one = LAG(one,1)

END

