%TVCCI_SS.M
%Deep structural parameters and detterministic steady state. The model economy is developed in ``Individual Versus Aggregate Collateral Constraints and the Overborrowing Syndrome,'' by Martin Uribe. 
%(c) Martin Uribe, April 27, 2006


function [RSTAR, SIG, OMEGA, BETTA1, ALFA, MU, z, PAIZ, KAPA, Kss,  QQss, Css, Hss, LAss, Ass, Yss, BETTAss] = tvcci_ss;


%Compute deep structural parameters given a values for the external debt-to-gdp ratio and q 
[RSTAR,SIG,OMEGA,BETTA1,ALFA,MU,z,PAIZ, Kss, KAPA] = tvcci_ss1;


%Working capital (set to zero in this model)
WKss=1-MU*(1-(1/RSTAR)); %MU is a parameter related to a working capital constraint set to zero and to be ignored

%Hours
Hss = ((1-ALFA) * WKss * Kss^ALFA)^(1/(ALFA+OMEGA-1));

%Output
Yss = Kss^ALFA * Hss^(1-ALFA);

%Consumption
Css = RSTAR^(1/BETTA1) - 1 +Hss^OMEGA/OMEGA;

%External debt
Ass = (Css-Yss*WKss) / (1/RSTAR - 1);

%Marginal Utility of Consumption
LAss = (Css-Hss^OMEGA/OMEGA)^(-SIG); 

%Discount factor
BETTAss=(1+Css-Hss^OMEGA/OMEGA)^(-BETTA1);

%Price of land
QQss = (1/(RSTAR-1))*ALFA*((Hss/Kss)^(1-ALFA))*WKss;


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%TVCCI_SS1.M 
% Compute deep structural parameters takes Qss=1 and Ass/Yss=ALFA_a  given

function [RSTAR,SIG,OMEGA,BETTA1,ALFA,MU,z,PAIZ, Kss, KAPA] = tvcci_ss1;

KAPA = .10;
RSTAR = 1.04;
SIG = 2;
OMEGA = 1.455;
ALFA_a=0.5;
ALFA = 0.32;
MU = 0;

%Productivity shock
ZH = 0.0258;
ZL = -ZH;
z = [ZL;ZH];

%Transition Probability matrix
PAIZHH = 0.71;
PAIZLL=PAIZHH;
PAIZHL=1-PAIZHH;
PAIZLH=1-PAIZLL;
PAIZ = [PAIZLL PAIZLH;PAIZHL PAIZHH];

WKss=1-MU*(1-(1/RSTAR)); %This is the adjustment due to the working capital constraint

Kss= ( ((RSTAR-1)/(ALFA*WKss)) * (((1-ALFA)*WKss)^((ALFA-1)/(ALFA+OMEGA-1))))^((ALFA+OMEGA-1)/((OMEGA-1)*(ALFA-1)));

Hss = ((1-ALFA) * WKss * Kss^ALFA)^(1/(ALFA+OMEGA-1));

Yss = Kss^ALFA * Hss^(1-ALFA);

BETTA1 = log(RSTAR) / log(Yss*WKss + ALFA_a*Yss*(1/RSTAR-1) - (Hss^OMEGA)/OMEGA + 1);