% This is the readme file for codes of paper "Title: Bubbly Booms and Welfare"

% The manuscript number is RED-D-23-00066

% Name of the authors: Feng Dong, Yang Jiao, Haoning Sun

% Editor in charge: Matteo Iacoviello

% Software & system: Matlab 2023a, Win10, Dynare 5.4

% All the codes are in the folder "code_and_data", and please run the codes in order of the following description 

1. file "national_price_labor.xlsx" contains the data for Figure 1;

2. for the baseline model:
	(1) run compare_two_eqm.m to generate results for Figure 2;
	(2) run "dynare transition" to generate Figure 3;
	(3) run calculate_welfare.m to generate Figure 4;
	(4) run "dynare transition_005to1" to generate Figure 5;
	(5) run calculate_welfare_lth.m to generate Figure 6;
	(6) run role_ex_ss.m to generate Figure 7(a);
	(7) run role_ex_dyn_bubbleless.m to generate Figure 7(b);
	(8) run compare_two_eqm_noex.m to generate Figure J.1;
	(9) run "dynare transition_noex" to generate Figure J.2;
	(10) run "dynare transition_005to1_noex" to generate Figure J.3;
	(11) run calculate_welfare_noex.m to generate Figure J.4;
	(12) run calculate_welfare_lth_noex.m to generate Figure J.5;
	(13) run model_policy_labortax.m to generate Figure 10;
	(14) run model_policy_tradetax.m to generate Figure 11;
	(15) run model_policy_subsidy.m to generate Figure 12;

3. for the extended model with elastic labor supply:
	(1) run model_extension_elasticlabor.m to generate results for Figure 8 and F.1;
	(2) run "dynare transition_extension_elasticlabor" to generate Figure F.2;
	(3) run "dynare transition_extension_elastic_lowtohigh" to generate Figure F.3;
	(4) run calculate_welfare_elasticlabor.m and calculate_welfare_elasticlabor_lth.m to generate Figure 9;

4. for the extended model with stochastic bubble:
	(1) run exist_bubbly_ss_stochastic.m to generate Figure E.1;
	(2) run compare_two_eqm_stochastic.m to generate Figure E.2;
	(3) run "dynare transition_burst" to generate Figure E.3;
	(4) run calculate_welfare_busrt.m to generate Figure E.4, note that this code calls datasets P.mat, LM.mat and P.mat, these are results of bubbly steady states under different values of \mu, which is generated by compare_two_eqm_stochastic.m;

5. for the extended model with household housing demand:
	(1) run model_extension2.m to generate Figure G.1;
	(2) run "dynare transition_extension2" to generate Figure G.2;

6. for the extended model with two housing markets：
	(1) run model_extension.m to generate results for Figure H.1 and H.3(a);
	(2) run "dynare transition_extension" to generate Figure H.2;
	(3) run calculate_welfare_extension.m to generate results for H.3(b);

7. for the extended model with capital market crowd-out:
	(1) run model_extension_capital.m to generate results for Figure I.1;
	(2) run "dynare model_extension_capital" to generate Figure I.2;
	(3) run calculate_welfare_extension_capital_lth_welinc.m to generate Figure I.3(a), and calculate_welfare_extension_capital_lth.m to generate I.3(b)

For most of the codes, the computing time is less than 1 minute. The only exception is for the code "role_ex_dyn_bubbleless.m", with which the computing time may be 5-15 minutes.