Materials Related to Altig, Christiano, Eichenbaum, Linde, ‘Firm-Specific Capital, Nominal Rigidities, and the Business Cycle’.
Overheads (pdf file , power point file – 11.4mb) for a Presentation at the Bank of Portugal, November 4, 2004.
The technical appendix for this project.
The software related to the project is available here. You will need the code for the Andersen-Moore Algorithm, general model-solving code, as well as the code designed specifically for this project. You can place all the files in one directory. If you place the code in three different directories, then run MATLAB in the directory where the model-specific code is located, and modify the setpath.m file to indicate the location of the Anderson-Moore and model-solving code.
You can replicate the results of the paper and execute robustness tests by running program main.m. The first section of this code allows the user to set parameters which control execution. To run the vector autoregression (VAR) part of the analysis, you may find it useful to work through this tutorial/homework assignment (the assignment refers to multivariate q statistics and AIC criteria, as well as a paper by Francis and Ramey). To analyze the equilibrium model, you may find this tutorial/homework useful. The paper reports estimation results for a benchmark version of the model, as well as several perturbations. Detailed notes on how to reproduce these results can be found in the readme.m file.