Example 2-3: Real Business Cycle Model with a Labor Decision (with Imperfect Information)
The files contained in the subdirectory
\solve\ex23\ analyze the standard RBC model with endogenous labor decision.
The files in \solve\ex23symbolic do the differentiation in ex23 using symbolic algebra
They allow the user to specify the information sets relative to which the expectation operator is applied to different Euler equations, as described in the paper.
.m files
|
foc1 |
Intertemporal Euler
equation. |
|
foc2 |
Intratemporal Euler
equation. |
|
main |
Computes the steady state, linearizes
the FONCs around the steady state, solves the linearized
model and simulates it. |
|
steady |
Solves for the steady state of the model given parameters.. |
Reference
Prescott, Edward C., 1986, Theory Ahead of Business Cycle Measurement, Federal Reserve Bank of Minneapolis, Quarterly Review 10(4), Fall, pages 9-22.