Overview of the computer code used in: 
"Matching fictions, unemployment dynamics and the cost of business cycles"
by Hairault, Langot, Osotimehin

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red_final_3.m is a matlab program that estimates the cost of business cycles induced by matching friction. 
It has been used to generate the results of table 4 and 7. This program:
 - solves a stochastic version of the Pissarides matching model with rigid wage à la Hall
 - simulates the average unemployment and welfare for the stochastic economy
 - computes the welfare cost of business cycles 

 
markovappr.m approximates a first-order autoregressive process with a Markov chain and markov.m generates simulations from a Markov chain

empirical_estimates.do is a Stata program that tests the convexity between unemployment and tfp shocks using the panel data constructed by Bassanini and
Duval (2006). These data can be found in A21.dta. The program has been used to generate the results of table 6. 

These programs have been written using Matlab 7.6.0 and Stata 10.