function[ zstar ] = sstate(pstar);
%
%   compute steady-state for Burnside, Eichenbaum and Rebelo Model
%
global TE
alpha=pstar(1,1); beta=pstar(2,1);  delta=pstar(3,1);   muA=pstar(4,1);
muG=pstar(5,1);   rhoA=pstar(6,1);  rhoG=pstar(7,1); 
h1=pstar(8,1);    v=pstar(9,1);     xi=pstar(10,1);   gamma=pstar(11,1); 
%
%
%
Ass = exp(muA/(1-rhoA));
gss = exp(muG/(1-rhoG)); 
a0     = -v*log(TE);
liter   = 1;
maxiter = 1000;
toler   = 1e-8;
metric  = 100;
wss     = .75;
while (metric > toler) & (liter <= maxiter)
   a1     = -v*log(TE-xi-h1*wss);
   wprime = (TE-xi-wss*h1)*(a1-a0)/(v*h1);
   metric = abs(wprime-wss);
   wss    = wprime;
   liter  = liter +1;
end;  
if liter >= maxiter; disp('WARNING:  Iteration Limit Reached in SS'); end;
a1    = -v*log(TE-xi-h1*wss);
phi   =((gamma-beta*(1-delta))/(beta*(1-alpha)*Ass*h1*wss^alpha))^(inv(alpha));
css   = alpha*Ass*h1*wss^alpha*phi^(alpha-1)/(a1-a0);
kss   = (css+gss)/(Ass*h1*(wss*phi)^alpha-(gamma-1+delta));
N1ss  = phi*kss;
xss   = (gamma-1+delta)*kss;
qss   = Ass*kss^(1-alpha)*h1*(wss*N1ss)^alpha;
%steady=[log(qss);log(css);log(xss);log(gss);log(kss);log(h1*N1ss);log(N1ss)]'
zstar = [ exp(1); Ass; gss; kss; N1ss; N1ss; wss; kss];