Review of Economic Studies version, 73, 2006, 195-218
NBER working paper No. 10261 version
Companion Documents
Deep Habits and Sticky Prices. (incomplete)
Why the monopolist does not deviate from the symmetric equilibrium in a Model with Good-Specific Subsistence Points, August 2007.
Matlab Code
Note: (1) Matlab's Symbolic Math Toolbox is required. (2) The code for solving DGE models to first order provided at the bottom of this page is required
figure1.m (run this program to produce figure 1 of ``Deep Habits'')
figure2.m (run this program to produce figure 2 of ``Deep Habits'')
figure3.m (run this program to produce figure 3 of ``Deep Habits'')
First-order approximation
gx_hx.m (by Stephanie Schmitt-Grohe and Martin
Uribe)
anal_deriv.m (by Stephanie Schmitt-Grohe and Martin Uribe)
num_eval.m (by Stephanie Schmitt-Grohe and Martin Uribe)
ir.m (by Stephanie Schmitt-Grohe and Martin
Uribe)
Data used in Estimation
Data Description
Data Spreadsheet