Behavior of capital

We consider the aggregate model with structural changes.

We keep index numbers to indM1 and indM2 together with state number vector sind

for the case with a single break. Then we set

k1=k[indM1[.,sind[t+1]]] for the first group

and

k1=k[indM2[.,sind[t+1]]] for the second group.

If we have two breaks, we will have

k1=k[indM3[.,sind[t+1]]] for the last group.

In general, we keep index numbers to indMs that is (n x dim) x dim matrix.

We pick every n elements in order. So far we do the same things as those for

non-aggregate model.

We set differently function fc in terms of A and Q rather than theta only.

That is,

In addition, we change kstar, k, k1, and ks by Kstar, K, K1, and Ks but they all

are optional because GAUSS system does not distinguish between large and small

letters.