Code for "Habit Formation and the Government Spending Multiplier"

This dataset contains the computational code used in the paper "Habit Formation and the Government Spending Multiplier." The code is designed to solve a Dynamic Stochastic General Equilibrium (DSGE) model, incorporating New Keynesian economics with deep habits, perform impulse response functions to government spending shocks, and calculate the government spending multiplier. These elements are crucial for understanding the dynamics discussed in the paper and replicating the key figures.

Software Requirements:
MATLAB R2019b or equivalent
Dynare (5.4)

Data Description:
The code uses synthetic data generated within a DSGE framework to analyze the impact of government spending shocks in various scenarios. The use of this controlled data environment is key for exploring the theoretical implications of the model. Additionally, the government spending multiplier is calculated over different time horizons. A detailed guide to reproducing the figures and tables in "Habit Formation and the Government Spending Multiplier" is available in the included readme file.
Instructions for Use:
Ensure MATLAB and Dynare are installed and functioning on your machine.
Create a folder where you the files will be saved.
Follow the step-by-step instructions in the readme file to replicate the analysis and figures.

Contact Information:
For queries or further clarification, please contact Rym Aloui at [e-mail].