var y pie r;
varexo e_y e_pie;

parameters delta sigma alpha kappa gamma1 gamma2;

delta =  0.44;
kappa =  0.18;
alpha =  0.48;
sigma = -0.06;
gamma1 = 1.5;
gamma2 = 0.5;

model(linear);
y  = delta*y(-1)+(1-delta)*y(+1)
     +sigma *(r-pie(+1))+e_y; 
pie = alpha*pie(-1)+(1-alpha)*pie(+1)
      +kappa*y+e_pie;
r = gamma1*pie+gamma2*y;
end;

shocks;
var e_y; stderr 0.63;
var e_pie; stderr 0.4;
end;

steady;
check;

stoch_simul(irf=15);