This folder contains codes necessary to reproduce the results reported in « Public Investment, Time to Build, and the Zero Lower Bound », by H. Bouakez, M. Guillard and J. Roulleau-Pasdeloup.
System and software information:
Operating system: Windows 7 Entreprise
Software: Matlab R2015, Dynare 4.4.2, Eviews 7

All model simulations use Matlab routines. You have to have the Dynare software installed to run some of the simulations. First, you have to modify the file named setpathdynare442. Enter the path for your Dynare folder in Dir1. Then enter the path leading to the folder toolkit_files in Dir2. The latter are necessary to compute the piecewise linear solution of the model (mainly for the robustness exercises and the medium scale model).
The empirical results reported in Section 5 of the paper are obtained using Eviews 7.
There are 6 sub-folders in this folder:
1. Baseline_model: contains the codes necessary to reproduce Figures 1 through 3. Figure x is obtained by running Fig_x.m. These codes do not require Dynare. Expected computation time :
Figure 1: 2 secs
Figure 2: 8 secs
Figure 3: 2 secs
2. Robustness_simple_model : contains the codes necessary to reproduce Figures 4 through 6.  Figure x is obtained by running Fig_x.m. Expected computation time :
Figure 4: 4 min 35 secs 
Figure 5: 4 min 40 secs
Figure 6: 10 min 30  secs
3. Medium_scale: contains the codes necessary to reproduce Figure 7 of the paper. To do so, you have to run Fig_7.m. Expected computation time: 22 secs
4. Sensitivity_mscale: contains the codes necessary to reproduce Figures 8 and 9 of the paper. First, run the codes Fig_CD_XXX.m (respectively, Fig_CES_XXX.m) in the folder CD_XXX (respectively, CES_XXX). To plot Figures 8 and 9, run the corresponding codes Fig_8_CD.m and Fig_9_CES.m. Expected computation time:
Figure 8: 20 secs for each of the three calibrations, then 2 secs to plot the figure  
Figure 9: 30 secs for each of the two calibrations, then 2 secs to plot the figure
5. Toolkit_files (from Guerrieri & Iacoviello (2014)): contains the codes necessary to run the OccBin algorithm.
6. Empirical_evidence: contains the data and Eviews workfile necessary to reproduce the empirical results in Section 5 of the paper. Expected computation time for each estimation: less than 2 secs.