README File

“Employment and Hours over the Business Cycle in a Model with Search Frictions”
By Noritaka Kudoh, Hiroaki Miyamoto, and Masaru Sasaki
October 2018

This README file explains how to replicate the results of the article. 

1. Software and operating system used
For quantitative analysis of the models, the programs are written in Matlab (R2017b) and use the Dynare toolkit (version 4.5.3). 
For empirical analysis, the data sets used to obtain the results of the paper are presented in excel file. 

2. Quantitative analysis

The main programs for quantitative analysis of the model are:
-model_base.mod
-model_hfix.mod
-model_bar.mod

model_base.mod, model_hfix.mod, and model_bar.mod are Dynare codes for the benchmark model, the model with fixed hours of work, and the model with bargained hours of work, respectively. 
These codes parametrize, solve the steady-state solutions, and simulate the models. 

In order to run the Dynare code, two Matlab codes (_cal.m and _steadystate.m) are required. For example, if you want to run “model_base.mod”, you need “model_base_cal.m” and “model_base_steadystate.m”. 
Please put these two files in the folder where the Dynare code (.mod file) is located. 

Each program takes about 03 secs to run. 

3. Empirical analysis
-The data sets used to obtain Table 1 and empirical results in Section 2 are presented in data.xls.  

-Figure 1 is generated by files fig1.m and dataj.txt