Carbon Taxes, Financial Frictions, and the Inflation–Output Trade-off in the Low-Carbon Transition
Description
Replication Package Title and Overview Paper: “Carbon Taxes, Financial Frictions, and the Inflation–Output Trade-off in the Low-Carbon Transition” Author: Facundo Luna Mallea (Central Bank of Chile, rluna@bcentral.cl) Journal: Economic Modelling — manuscript ECMODE-D-26-01572 This package reproduces every quantitative result in the paper and its appendices. The analysis is a calibrated two-sector E-DSGE model with Gertler–Karadi banking frictions, endogenous abatement and Epstein–Zin preferences, solved with a second-order perturbation approximation with pruning in Dynare. All model output (tables, figures, welfare and policy-rule optima) is generated by the MATLAB/Dynare code in Code/; the only external data are six publicly available U.S. macroeconomic series used for the model-validation exercise, retrieved by the Stata script in Stata/. Running Code/RUN_ALL.m reproduces the complete set of results from scratch.