Gunn & Johri
August 2010
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This zip file Gunn_Johri_NKC.zip contains the MATLAB files necessary for reproducing Figures 1 and 2 in ''News and knowledge capital'' (Gunn & Johri 2010). 

The subfolder kwrem contains the Matlab files provided by Andre Kurmann (UQAM) to solve linear difference rational expectations models using the method outlined in King & Watson (2002) "System Reduction and Solution Algorithms for Singular Linear Difference Systems under Rational Expectations". The paper "Solving Linear Rational Expectations Model:
An Introductory Guide" (King & Kurmann 2002) provides a good explanation of the kwrem.zip Matlab solution. 

The subfolder gj_nkc contains the Matlab files specific to the Gunn & Johri model. These programs require the generic files contained in kwrem and therefore all files in kwrem and gj_nkc should be extracted into a common Matlab working folder.

Description of files in gj_nkc:

- con_NKC_fig1.m	Execute this control file to reproduce Figure 1 in the paper. The file solves the baseline RBC and knowledge capital models and computes irfs for both models for the case of a fully realized news shock. 
	
- con_NKC_fig2.m	Execute this control file to reproduce Figure 2 in the paper. The file solves the knowledge capital model and computes irfs for the case of a news shock that is NOT realized.  

- sys_NKC_rbc.m		System file containing the baseline RBC model and paramterization.

- sys_NKC_rbc.m		System file containing the knowledge capital model and paramterization.

- drv_NKC.m		Driver file containing the shock information for the baseline RBC and knowledge capital models. 

- impkw_NKC.m		Function to produce irfs for fully realized news shocks in Figure 1.

- impkw_NKC_unfld.m	Function to produce irfs for unrealized news shocks in Figure 2.

- plot_NKC_comove.m	Function to plot RBC and KC models for Figure 1.

- plot_NKC_boom_bust.m	Function to plot KC models for Figure 2.