This .zip file contains the MATLAB/DYNARE replication codes for the model developed by
Eichenbaum, Rebelo and Trabandt (2022), 'Epidemics in the New Keynesian Model'.


Link to paper and code: 
https://www.mathiastrabandt.com/research


All codes were written and run with Matlab R2021a and DYNARE 4.6.1 The nonlinear
model is solved and simulated with Dynare's nonlinear deterministic solver.

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//IMPORTANT: You must use DYNARE 4.6.1 to run this code kit.  //// 
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The codes contain a lot of comments that describe in detail how the codes are set up. Please read the comments carefully.

All folders in the .zip file contain the same code yet with different parameter settings. Please always inspect and run ert_model.mod using Dynare 4.6.1. 


Folders:
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The folder <nk> contains the code for the baseline New Keynesian model. Inspect and run ert_model.mod using Dynare 4.6.1. All other routines in the folder are called automatically.


The folder <nk_demand_only> contains the code for the New Keynesian model with the epidemic consumption demand channel active and the epidemic labor supply channel switched off. In line 68, pi1_shr_target is set to 1-pi3_shr_target and in line 69 pi2_shr_target is set to 0. Inspect and run ert_model.mod using Dynare 4.6.1. All other routines in the folder are called automatically.


The folder <nk_supply_only> contains the code for the New Keynesian model with the epidemic consumption demand channel switched off and the labor supply channel active. In line 68, pi1_shr_target is set to zero and in line 69 pi2_shr_target is set to 1-pi3_shr_target. Inspect and run ert_model.mod using Dynare 4.6.1. All other routines in the folder are called automatically.


Figures:
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The files in this .zip file that are named figs05_...through figs10_... are the MATLAB .m files that reproduce the figures provided in the paper. 


Martin Eichenbaum, Sergio Rebelo and Mathias Trabandt (mathias.trabandt@gmail.com)

October, 2021



