This file provides some information regarding the MATLAB replication files for the paper ``Fiscal multipliers under and interest rate peg of stochastic vs. deterministic duration''  by Carlstrom, Fuerst and Paustian 
   

  1. To redo the figures from the paper are computed run files called FIGURE_1a.m, FIGURE_1b.m etc

  2. Similarly to redo the tables, run TABLE_1_column_1.m, TABLE_2.m etc.

  3. Some codes make use of Chris Sims gensys.m routine for solving linear RE models. They are provided in the folder ``gensys''.

  4. The folder ``check'' contains some alternative ways to compute the multipliers we report in the paper. 

a)
In the model with capital we could use one of many algorithms for solving Markov Switching RE models to solve the stochatic exit model. Clearly, this is more complicated than necessary. We use the MSRE algorithm provided by Cho(2013). This is done by runnig the file main_fiscal_multiplier_MSRE.m in the subfolder ``Markov_Switching_Multiplier''. 

b) The deterministic exit multipliers can also be computed using equation (25) from the paper. This is done in the file main_VAR_solution.m in the ``checks'' folder.

c) The nonlinear solution can be computed by stacking the equilibrium conditions for every period in one big nonlinear system. This is done in main_rotemberg.m.




For questions, contact m_paustian@yahoo.de AND paustian@gmail.com

