Replication for:

"Pricing-to-Market in Business Cycle Models"
by Lukasz A. Drozd, Marcin Kolasa, and Jaromir Nosal

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For model solution files, go to ModelCodes folder and follow ModelSolutions_README.txt or read this:

All baseline results can be replicated by running Main.m in Matlab with Dynare. We used Matlab R2025a and Dynare version 7.0 on MacBook Pro M4 Max with 128GB RAM, and the total run time of all three sections took around 27 seconds, giving the total run time of all four models of around 120 seconds.

For tables 4 and 5, run Main.m in folder ReplicationCodes
For tables 8 and 9, run Main.m in folder ReplicationCodes_lessopen
For tables 10 and 11, run Main.m in folder ReplicationCodes_z
For tables 12 and 13, run Main.m in folder ReplicationCodes_n

The file Main.m consists of 3 sections:

Section 1 calibrates the models using a moment matching routine and saves the simulated moments in dedicated mat-files.
Section 2 solves the models for given parameters included in the mod-files, which corresponds to the baseline parameterization reported in the paper. As such, this section generates exactly the same simulated moments as Section 1, but may be useful if one wants to modify some parameters without recalibrating the models. 
Section 3 generates LaTeX tables with the moments as reported in the paper and saves them in subfolder Tex. 

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For Mathematica notebooks with log-linearization derivations, go to Theory folder and follow Derivations_README.txt or read this:

This folder contains selected algebra-heavy log-linearizations and derivations used in Appendix for Section 3. 

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For data sources and moments, go to Data folder and follow Data_README.txt or read this:

This folder replicates Table 1:
For Compustat entries, run Jupyter notebook file compustat_markups.ipynb.
For I–O entries, see Excel file 2017_402_sectoral_markups.xlsx (sheet Table_1).
For the data column in Tables 4–13, refer to moments reported in:
[1] Drozd, Lukasz A., and Jaromir B. Nosal. 2012. "Understanding International Prices: Customers as Capital." American Economic Review 102 (1): 364–95.

Additional moments can be found in the replication package for [1], available from AER's website in Data\IRBC Statistics\XM_in_US.xls.
The correlation between log(p^D/p^f) and log(f/D) was replicated from raw replication files in [1] as described in Excel file pDpf_fD_correl.xlsx.
See sheet Calculations, cell J3. Source: Replication package for [1] in Data\IRBC Statistics\XM_in_US.xls; Sheet "VR in US," Cells: M85:N182.