function[ zstar ] = sstate(pstar) % % compute steady-state for Hansen divisible labor model % lambda = 1; theta = pstar(1,1); delta = pstar(2,1); beta = pstar(3,1); A = pstar(4,1); rho = pstar(5,1); % % % p = (1/beta) - 1; hss = (1-theta)*(p+delta)/(3*(p+delta) - theta*(p+3*delta)); kss = ((p+delta)/theta)^(inv(theta-1))*hss; iss = delta*kss; css = lambda*(kss^theta)*(hss^(1-theta)) - iss; zstar = [ 1; lambda; kss; iss; hss];