‘Introducing financial frictions and unemployment into a small open economy model,’ by Lawrence J.Christiano, Mathias Trabandt, and Karl Walentin.

The Dynare code for this model is here.

The code package contains separate directories with ready-to-use specifications of various submodels:

- Full model, which includes financial frictions and a Diamond-Mortensen-Pissarides (DMP) search-matching framework for the labor market (“CTW”)

- No DMP (“Finfric”)

- No financial frictions (“Unempl”)

- Neither DMP nor financial frictions (“Baseline”)

- Closed economy (“CTW_closed_ec”)

- No endogenous separations (“CTW_exo”)