Christian R. Proaño

You can find here some of the codes I have written over the years. Most of them are written in Dynare (https://www.dynare.org/), a user-friendly collection of MATLAB routines, or directly in MATLAB, and you can run them using OCTAVE (https://www.gnu.org/software/octave/), its freeware analogue. You can find here instructions about how you can set up your MATLAB or OCTAVE environment to work with Dynare.

Disequilibrium Macro

The following codes implement macroeconomic models in the “disequilibrium” tradition of Chiarella and Flaschel (2000) and Chiarella, Franke and Flaschel (2005). They consist of behavioral – not “neoclassically” microfounded – equations and the dynamics are primarily based on disequilibrium situations in the goods and/or labor markets. Additionally, some of them are nonlinear and do not necessarily converge to a unique steady state. Below you find a slide presentation about this modeling approach (labelled sometimes as the “Bielefeld School”) I gave in occasion of the 2021 Friede-Gard Prize awarded to Peter Flaschel for his lifetime work.

Disclaimer: The Dynare .mod files of these models have been written recently and sometimes some specifications have been simplified to fit the dynare syntax and/or capabilities. Codes of models not (co-)authored by myself are not replication files in the strict sense of the word, but just an intent to translate models in the “disequilibrium” tradition in Dynare to facilitate its further development and foster the dialogue between different schools of thought.

• Franke, R., Flaschel, P. & C.R. Proaño (2006), Wage-Price Dynamics and Income Distribution in a Semi-Structural Keynes-Goodwin Model. Structural Change and Economic Dynamics, 17, 452-465. Dynare .mod file.

• Proaño, C. R. (2009), (De-)Stabilizing International Macroeconomic Interactions in an Estimated Model of the U.S. and the Euro Area, International Economics and Economic Policy, 6(4), 421-443. Dynare .mod file coming soon!

• Proaño, C.R. (2012), Gradual Wage-Price Adjustment, Labor Market Frictions and Monetary Policy Rules, Journal of Economic Behavior & Organization, 82(1), 220-235. Dynare .mod file coming soon!

• Proaño, C. R. & B. Lojak (2017), Macroeconomic Risk, Fiscal Policy Rules and Aggregate Volatility in Asymmetric Currency Unions: A Behavioral Perspective. In: Bökemeier, B. & A. Greiner (eds.): Inequality and Finance in Macrodynamics. Dynamic Modeling and Econometrics in Economics and Finance Series 23, 221-242. New York: Springer. Dynare .mod file coming soon!

More codes coming soon!

Behavioral Macro

The following models have a focus on the specification of heterogenous and boundedly rational expectations following the Adaptive Rational Expectations Dynamics (ARED) approach by Brock and Hommes (1997).

Coming soon!

DSGE Macro

Standard DSGE modeling is nowadays predominantly done in Dynare. Below you find a Dynare .mod file of my own. For excellent introductory examples of rational expectations and DSGE models check out the Vermandel’s website, or the Pfeiffer’s collection of Dynare codes.