%SP_RUN.M
% This program produces impulse responses in an RBC model with good-specific subsistence points (see ``The Macroeconomics of Subsistece Points,'' by M. Ravn, S. Schmitt-Grohe, and M. Uribe)
% 
%(c) Stephanie Schmitt-Grohe and Martin Uribe
%
%Date 31-Oct-2004

%SHOCKS
%shock=1 preference
%shock=2 government
%shock=3 technology
for shock=1:3

%Compute analytical derivatives of equilibrium conditions
[fx,fxp,fy,fyp,f] = sp;


%Numerical evaluation

%Assign values to parameters and steady-state variables

[ THETA,GBAR,SIGMA,CHI,GAMA,BETTA,DELTA,ALFA,ETA,CSTAR,IVSTAR,GSTAR,RHOZ,RHOG,RHOV,w,h,c,u,k,iv,mu,a,g,v,output,wp,hp,cp,up,kp,ivp,mup,ap,gp,vp,outputp,W,H,C,U,K,IV,MU,A,G,V,OUTPUT,PHI,EHW,SC,SG,SI,THETA_C,THETA_G,THETA_I]=sp_ss(0.3,0.3,0.3);

%the numbers in parenthesis correspond to (theta_c,theta_g,theta_i)

%For the paper ``The Macroeconomics of Subsistence Points,'' replace the above parenthesis with (0.3,0.3,0.3)

approx = 1; %Order of approximation desired

%Compute numerical derivatives of f
num_eval

[gx,hx] = gx_hx(nfy,nfx,nfyp,nfxp); 

T=21
%Compute impulse responses
IR = ir(gx,hx,[0 (shock==1)*(C-CSTAR) (shock==2)*1 (shock==3)*1],T);
Ir(:,:,shock) = IR;

t=(0:size(IR,1)-1)';


c = squeeze(Ir(:,5,:));
h = squeeze(Ir(:,4,:));
w = squeeze(Ir(:,3,:));
iv = squeeze(Ir(:,6,:)); 
u= squeeze(Ir(:,7,:));
output = squeeze(Ir(:,2,:));
mu = squeeze(Ir(:,1,:));
g = squeeze(Ir(:,10,:));
a = squeeze(Ir(:,11,:));

subplot(3,4,1+(shock-1)*4)
plot(t,mu(:,shock),'-')
title('Markup')
%ylabel('% dev. from ss')

subplot(3,4,2+(shock-1)*4)
plot(t,output(:,shock))
title('Output')
%ylabel('% dev. from ss')


subplot(3,4,3+(shock-1)*4)
plot(t,w(:,shock))
title('Wage')
%ylabel('% dev. from ss')


subplot(3,4,4+(shock-1)*4)
plot(t,c(:,shock))
title('Consumption')
%ylabel('% dev. from ss')


end
shg