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)