GAUSS procedures for
"Financial Frictions, Financial Shocks, and Aggregate Volatility"
by Cristina Fuentes-Albero

NOTE: before you can run the subsequent programs
      you have to install the GAUSS-src files

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Specification files
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pathspec.g: 	it contains specification of path variables
bgg_spec.g: 	it specifies the dating of the breaks and the prior to use


Estimation of the DSGE model:
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bgg_d_pm.g: it computes the posterior mode for the DSGE model

bgg_hess.g: it computes the numerical hessian at the posterior mode using the output generated by bgg_d_pm.g	

bgg_mh.g: it generates draws from the posterior density using the Metrolopolis-Hastings algorithm using the output generated by bgg_d_pm.g and bgg_hess.g

d_parapmom_median.g: it computes the posterior median and the credible intervals using the output generated by bgg_mh.g

vdc_frequency.g: it computes the variance decomposition at business cycle frequencies for the variables in (log) levels using the output generated by bgg_mh.g

counterfactuals_hp_new.g: it generates the counterfactual exercises of the paper for the variables used in the estimation using the output generated by bgg_mh.g

counterfactuals_additional.g: it generates several additional counterfactual exercises using the output generated by bgg_mh.g

bgg_irf_median.g: it generates the impulse responses using the output generated by bgg_mh.g

bgg_filt.g: it generates smoothed states/shocks using the output generated by bgg_mh.g

bgg_filtplot.g: it plots smoothed shocks using the output generated by bgg_filtplot.g


Mode-specific libraries
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1. bgg_mod.src: it contains the model equations

2. bgg_para.src: it contains procedures for transformations of the parameter vector and the computation of the steady state of the economy.

3. bgg_filt.src: it contains routines for the Kalman smoother

