- In this folder, you can find a set of files that generates posterior estimates of the baseline model, i.e., the GNK model with firm-specific labor. - Software and operating system used: MATLAB R2017b; Windows 10 Pro - Last modified: 2/19/2020 "main.m" runs the SMC algorithm to estimate the model. This file uses procedures collected in the subfolders. - MATLAB codes are based on the set of replication codes for Herbst and Schorfheide (2015) "Bayesian Estimation of DSGE Models" Princeton University Press: available at https://web.sas.upenn.edu/schorf/companion-web-site-bayesian-estimation-of-dsge-models/ - The baseline model is specified in the files "model_solution.m" and "model_solution2.m" of the folder "Mfiles". - The seed for random numbers is set by "rng(0)" in "main.m". - Computation time: 70 minutes for the pre-1979 sample and 50 minutes for the post-1982 sample, using a workstation with two CPUs (Intel Xeon E-2630 v4, 20 cores in total). "us1966Q11979Q2rev.txt" and "us1982Q42008Q4rev.txt" are the data files whose first column is output growth, second column is inflation, and third column is the federal fund rate. The data are constructed in the Excel file "RED_2019_271_data.xlsx." "prior_dsge.txt" specifies prior distributions. "bound_dsge.txt" specifies the upper and lower bounds of the prior distributions.