https://github.com/pmichaillat/economical-model

AD-AS diagrams from the paper "An Economical Business-Cycle Model"
https://github.com/pmichaillat/economical-model

ad-curve as-curve beveridge-curve euler-equation matching-function matching-model monetary-policy paper-with-code tightness unemployment wealth-in-utility wealth-tax zero-lower-bound

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AD-AS diagrams from the paper "An Economical Business-Cycle Model"

• Host: GitHub
• URL: https://github.com/pmichaillat/economical-model
• Owner: pmichaillat
• License: cc-by-4.0
• Created: 2024-04-12T12:28:34.000Z (9 months ago)
• Default Branch: main
• Last Pushed: 2024-04-18T16:43:26.000Z (8 months ago)
• Last Synced: 2024-04-18T18:21:14.147Z (8 months ago)
• Topics: ad-curve, as-curve, beveridge-curve, euler-equation, matching-function, matching-model, monetary-policy, paper-with-code, tightness, unemployment, wealth-in-utility, wealth-tax, zero-lower-bound
• Homepage: https://pascalmichaillat.org/7/
• Size: 1.2 MB
• Stars: 2
• Watchers: 2
• Forks: 0
• Open Issues: 0
• Metadata Files:
  • Readme: README.md
  • License: LICENSE.md

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README

        
# An Economical Business-Cycle Model: AD-AS Diagrams

This repository contains the AD-AS diagrams from the paper "An Economical Business-Cycle Model", written by [Pascal Michaillat](https://pascalmichaillat.org) and [Emmanuel Saez](https://eml.berkeley.edu/~saez/), and published in [Oxford Economic Papers](https://doi.org/10.1093/oep/gpab021) in April 2022.

## Paper webpage

The paper is available at https://pascalmichaillat.org/7/. The AD-AS diagrams appear in figures 2–8.

## Diagram descriptions

The AD-AS diagrams are drawn by hand using Keynote on Mac, and then exported to PDF.

+ `figure2.key`, `figure2.pdf` – Figure 2: solution of the model

+ `figure3.key`, `figure3.pdf` – Figure 3: response to a negative AD shock 

+ `figure4.key`, `figure4.pdf` – Figure 4: response to a negative AS shock 

+ `figure5.key`, `figure5.pdf` – Figure 5: response to a decrease in nominal interest rate 

+ `figure6.key`, `figure6.pdf` – Figure 6: response to an increase in wealth tax rate 

+ `figure7.key`, `figure7.pdf` – Figure 7: optimal monetary policy restores efficient unemployment when the unemployment gap is small

+ `figure8.key`, `figure8.pdf` – Figure 8: optimal monetary policy reaches the zero lower bound when the unemployment gap is large  

## License

The content of this repository was created by Pascal Michaillat and Emmanuel Saez and is licensed under the [Creative Commons Attribution 4.0 International License](http://creativecommons.org/licenses/by/4.0/).