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Dynare replication of "A Model of Secular Stagnation: Theory and Quantitative Evaluation" by Eggertsson et al. (2019)

Author

Listed:
  • Crescentini, Alex
  • Giri, Federico

Abstract

This paper replicates the study "A Model of Secular Stagnation: Theory and Quantitative Evaluation" by Eggertsson et al. (2019) using the Dynare toolkit. Replication is important as it confirms the results of the original article, provides a user-friendly version using Dynare (Adjemian et al., 2022), and shows how to deal with large-scale models with occasionally binding constraints. The results show that the original Matlab code was fully replicated, but minor discrepancies were found between the paper's equations and the code. The two models produce similar dynamics but with small differences, particularly at the beginning of the simulation.

Suggested Citation

  • Crescentini, Alex & Giri, Federico, 2023. "Dynare replication of "A Model of Secular Stagnation: Theory and Quantitative Evaluation" by Eggertsson et al. (2019)," I4R Discussion Paper Series 56, The Institute for Replication (I4R).
    • Handle: RePEc:zbw:i4rdps:56
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    References listed on IDEAS

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    1. Lawrence H. Summers, 2015. "Demand Side Secular Stagnation," American Economic Review, American Economic Association, vol. 105(5), pages 60-65, May.
    2. Holden, Tom D., 2016. "Computation of solutions to dynamic models with occasionally binding constraints," EconStor Preprints 144569, ZBW - Leibniz Information Centre for Economics.
    3. Jonathan Swarbrick, 2021. "Occasionally Binding Constraints in Large Models: A Review of Solution Methods," Discussion Papers 2021-5, Bank of Canada.
    4. Guerrieri, Luca & Iacoviello, Matteo, 2015. "OccBin: A toolkit for solving dynamic models with occasionally binding constraints easily," Journal of Monetary Economics, Elsevier, vol. 70(C), pages 22-38.
    5. Gauti B. Eggertsson & Neil R. Mehrotra & Jacob A. Robbins, 2019. "A Model of Secular Stagnation: Theory and Quantitative Evaluation," American Economic Journal: Macroeconomics, American Economic Association, vol. 11(1), pages 1-48, January.
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    Keywords

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    JEL classification:

    • E0 - Macroeconomics and Monetary Economics - - General
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium

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