https://github.com/pmichaillat/economical-model
AD-AS diagrams from the paper "An Economical Business-Cycle Model"
https://github.com/pmichaillat/economical-model
business-cycles keynote market-tightness matching-model monetary-policy paper-with-code unemployment wealth-in-the-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 (over 2 years ago)
- Default Branch: main
- Last Pushed: 2025-05-27T19:43:19.000Z (about 1 year ago)
- Last Synced: 2025-05-27T20:39:09.336Z (about 1 year ago)
- Topics: business-cycles, keynote, market-tightness, matching-model, monetary-policy, paper-with-code, unemployment, wealth-in-the-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.
## Diagrams
The AD-AS diagrams are drawn by hand using Keynote and 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
This repository is licensed under the [Creative Commons Attribution 4.0 International License](http://creativecommons.org/licenses/by/4.0/).