clear?all;
close?all;


%?Define?the?structural?parameters?of?the?model
%?i.e.?policy?invariant?preference?and?technology?parameters
%?alpha?:?capital‘s?share?of?output
%?beta??:?time?discount?factor
%?delta?:?depreciation?rate
%?sigma?:?risk-aversion?parameter?also?intertemp.?subst.?param.
%?gamma?:?unconditional?expectation?of?the?technology?parameter
alpha?=?.35;
beta??=?.98;
delta?=?.025;
sigma?=?2;
zbar?=?5;

%?Find?the?steady-state?level?of?capital?as?a?function?of?
%???the?structural?parameters
kstar?=?（（1/beta?-?1?+?delta）/（alpha*zbar））^（1/（alpha-1））;

%?Define?the?number?of?discrete?values?k?can?take
gk?=?101;
k??=?linspace（0.95*kstar1.05*kstargk）;


%?Compute?a?（gk?x?gk）?dimensional?consumption?matrix?c
%???for?all?the?（gk?x?gk）?values?of?k_t?k_t+1?
for?h?=?1?:?gk
???for?i?=?1?:?gk
????????c（hi）?=?zbar*k（h）^alpha?+?（1-delta）*k（h）?-?k（i）;
????????if?c（hi）?????????????c（hi）?=?0;
????????end
????????%?h?is?the?counter?for?the?endogenous?state?variable?k_t
????????%?i?is?the?counter?for?the?control?variable?k_t+1
???end
end

%?Compute?a?（gk?x?gk）?dimensional?consumption?matrix?u
%???for?all?the?（gk?x?gk）?values?of?k_t?k_t+1
for?h?=?1?:?gk
???for?i?=?1?:?gk
????????if?sigma?==?1
????????????u（hi）?=?log（c（hi））;
????????else
????????????u（hi）?=?（c（hi）^（1-sigma）?-?1）/（1-sigma）;???