Replication Data for: Optimal Monetary Policy with Search Frictions and Consumption Inequality
Description
This repository contains the replication package for the paper "Optimal Monetary Policy with Search Frictions and Consumption Inequality". It provides the complete datasets and codebase required to fully replicate all empirical and quantitative results, including figures, tables, and footnote values presented in the main text and appendices. Key Contents of the Package: Empirical Data & Analysis: Includes all publicly available raw data, processed analysis data, and Stata scripts (.do files) required for data management, technology shock extraction (Stage 1), and empirical VAR model analysis. Macroeconomic Models: Includes MATLAB scripts to simulate and evaluate various theoretical models, including Representative Agent New Keynesian (RANK) and Two-Agent New Keynesian (TANK) models under different assumptions (e.g., search and matching frictions, GHH preferences). Master Scripts: The package is designed to be highly user-friendly. Replicators can simply execute the master scripts (all_matlab_run.m and all_stata_run.do) to automatically generate and save all outputs into designated folders (/graphics/ and /results/). Software Requirements: MATLAB R2025b (Requires Symbolic Math, Optimization, Statistics and Machine Learning, and Control System toolboxes) Stata 16 (or higher) Please refer to the README.pdf file included in the root directory for detailed step-by-step replication instructions, hardware specifications, and a comprehensive mapping of all tables and figures to their corresponding generating scripts.
Files
Steps to reproduce
Please refer to the README.pdf file for the most comprehensive and detailed instructions. A quick guide to reproducing the results is as follows: Step 1: Preparation Download the Replication_Package.zip file to your local drive and extract all contents. Step 2: MATLAB Replication (Simulations & Main Models) Open MATLAB (tested on R2025b). Set the extracted root folder as your Current Working Directory. Open and execute the master script: all_matlab_run.m. Result: The script will sequentially run all individual MATLAB models. Generated figures (.pdf) will be saved in the /graphics/ folder, and LaTeX tables/footnote texts (.tex) will be saved in the /results/ folder. (Expected execution time: approx. 31 minutes). Step 3: Stata Replication (Empirical Figures & Data Management) Open Stata (tested on Version 16). Change the working directory to the extracted root folder. Execute the master script: all_stata_run.do. Result: This script automatically executes all necessary data management codes (cleaning, merging, and transforming raw data into analysis datasets) and generates Figures 9 and 11. (Expected execution time: approx. 1 minute). Note: If you wish to replicate a specific figure or table individually, you can run the corresponding script directly from the root folder. Please see the "List of Tables and Programs" section in the README.pdf for the exact mapping of outputs to scripts.