This directory contains files for

  Sticky Price Models of the Business Cycle:
  Can the Contract Multiplier Solve the Persistence Problem?
  by V.V. Chari, Patrick J. Kehoe, and Ellen R. McGrattan.


Ellen's notes are given in derive.tex/derive.ps.

The Matlab codes:

  table2a.m
  table2b.m
  table3.m 
  figures.m

can be run to generate results in the tables and figures.
The intermediate and final results from running these codes 
are given in

  table2.out
  table3.out
  figures.dat
  figure1.eps
  figure2.eps.

The Matlab codes:

  sticky1.m   : Staggered pricing with Benchmark utility function
  sticky2.m   : Staggered pricing with near-perfect-substitutes utility
  sticky3.m   : Same as sticky1 except that m(-1) appears in state vector
  lsticky1.m  : Same as sticky1 except first order conditions are linearized

can be run to generate results for parameter values specified
by the user.

The TeX file:

  derive.tex

has derivations of analytical results and a description of the numerical
calculations done in the Matlab codes.

The Matlab codes:

  stokey1.m
  stokey2.m
  stokey3.m

were used to check results in Appendix B.

The files res_***.m contain first order condition residuals
and are called by the codes listed above.
   


Ellen McGrattan
November 1998