% Calibrated parameter values clear; beta=0.9; alpha=0.75; sigma=1; delta=0.3; rho=0.95; % Calculate steady-state values kbar=((1-(1-delta)*beta)/(alpha*beta))^(1/(alpha-1)); cbar=kbar^alpha-delta*kbar; ybar=kbar^alpha; % Define state space matrices A0=zeros(3,3); A0(1,1)=1-(1-delta)*beta; A0(1,2)=(1-(1-delta)*beta)*(alpha-1); A0(1,3)=-sigma; A0(2,2)=kbar; A0(3,1)=1; A1=zeros(3,3); A1(1,3)=-sigma; A1(2,1)=ybar; A1(2,2)=alpha*ybar+(1-delta)*kbar; A1(2,3)=-cbar; A1(3,1)=rho; B0=zeros(3,1); B0(3,1)=1; % Calculate alternative state space matrices A=inv(A0)*A1; B=inv(A0)*B0; % Jordan decomposition of A [p,lambda] = eig(A); pstar = inv(p); % Sort eigenvalues and eigenvectors in ascending order val=diag(lambda); t=sortrows([val p'],1); lambda=diag(t(:,1)); p=t(:,2:4)'; pstar=inv(p);