The Political Economy of Currency Unions

Published: 22 July 2024| Version 1 | DOI: 10.17632/3ynhndrycc.1
Contributor:
Kai Arvai

Description

# Replication Package for "The Political Economy of Currency Unions" ## Author Kai Arvai ## Requirements - Software: Matlab R2021A - Toolboxes: Econometrics Toolbox, Optimization Toolbox, Global Optimization Toolbox - run on Windows 10 - Computation time: Around 48h ## Instructions 1. **Setup**: Ensure all required software is installed. 2. **Run the main script**: - Run `Main.m` to generate all tables and figures. This can take multiple hours. ## Folder Structure - Figures_Tables contains all generated figures and tables - Functions contains all functions used bu the main file - Input_data contains the GDP data used to construct empirical moments - Output_data contains the data generated by the matlab file - Codes contains individual matlab files that create the main graphs and data ## Codes - GDP_Correlation reads in the GDP data and creates the empirical moments and Figure B1 in the Appendix [this takes a few seconds] - Estim_Markov generates Table 1 and the parameters used to simulate the shock process. It saves Model_Markov, a seed is set as a default, the folder Output_data already contains a Model_Markov_09072023 as a default. [this takes a few minutes] - Model_Simulation generates Table 2 and Figure 1 and Figure B2, B3. [this can take several hours] - Model_Simulation_asym generates Figure 4 and Figure B4. [this can take several hours] - Sust_Frontier_2Country generates Figure 2, and Figure 3b 3c and 3d [this can take several hours] - Three_Estim_Markov generates the parameters to simulate the shock process for the three country extension and gives the numbers in Appendix B.6. [this takes a few minutes] - Sust_Frontier_3Country generates the sustainability frontiers in Figure 3a [this can take one hour] - Duration creates Figure B5 [this takes by far the longest] - Duration_monoton creates Figure B6 [this can take several hours] ## Contact For any questions, please contact: kai.arvai@banque-france.fr

Files

Steps to reproduce

Run the file "Main.m"

Institutions

Banque de France

Categories

International Economics, Macroeconomics, Monetary Economics

Licence