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This folder contains all the programs necessary to reproduce the results in the paper

"Market Regulation, Cycles and Growth Dynamics in a Monetary Union"

by Mirko Abbritti and Sebastian Weber

March 4, 2024

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INSTRUCTIONS:

To run the model with endogenous growth, run  the file "AWMU_final.mod" with Dynare ver. 4.5.1. 

The baseline calibration is included in the file "AWMU_baseline_final.m". 
To perform sensitivity analysis with different parameters, use the calibration file "AWMU_sens_calibr.m". 
Notice that the latter file uses the deep parameter obtained with the baseline calibration and saved on "ex_param.mat". 
Based on this, it computes endogenously the steady state using the function "system_AWMU.m".

To run the model with exogenous growth, run the file "AWMU_final_exo.mod" with Dynare. 

Specifically: 

- The results in Tables 1 and 2 are obtained by running these models for different values of the labor and product market variables. 

- The results of Table 3 are obtained by running the file "AWMU_sens_calibr.m" for different  values of labor and product market regulation (see lines 39-64) 

- Figures 5, 6 and 8 are produced running the file "plots_irf_AWMU.m" contained in the folder "Figures". 
This file uses the IRFs obtained running "AWMU_final.mod" and "AWMU_final_exo.mod" and previously stored into the matrices "allirfs_...".

- Figure 7 is produced by running the code "chart_TS.m" contained in the folder "SSanalysis". 
It uses the results of the file "AWMU_sens_plot2.m" stored in the same folder.


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