Dynamic Macro Script for Matlab

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Chris Herdelin 2021-1-21

How do I script the Solow Model attached in Matlab?

Specifically, how do I code the endogoenous as well as the exogoeneous variables in the model?

I am having trouble with the syntax. Any help you could give me would be greatly appreciated!

Do I use "syms" to generate the variables of interest?

% Dynamic Macroeconomics

% Chapter 3

% Solow Model in discrete time

% _____________________________________ %

% Three permanent shocks are introduced in order to study

% the dynamic behavior of the model

% 1. A 1 per cent shock to the savings rate (endval of x 1.01)
% 2. A 1 per cent shock to total factor productivity (endval of a 1.01)
% 3. A 1 per cent shock to population growth (endval of z 1.01)
% _____________________________________ %% Endogenous Variables:% y output, k capital, c consumption

% w real wage, r real interest rate, sav savings rate

% Exogenous Variables and Shocks

% a total factor productivity, x shock to the savings rate

% z shock to population growth

% Parameters

% alpha share of capital in production, delta depreciation rate

% n population growth rate, g rate of technical progress

% s initial savings rate

var y k c w r sav;

varexo a x z;

parameters alpha delta n g s;

alpha=0.333; delta=0.03; n=0.01; g=0.02; s=0.30;