Matlab/Dynare program codes for 
Ginters Buss, 2014. "Financial Frictions in a DSGE Model for Latvia," Working Papers 2014/02, Latvijas Banka.
publihsed as
Ginters Buss, 2016. "Financial frictions in Latvia," Empirical Economics, Springer, vol. 51(2), pages 547-575, September.

Copyright of this version: Latvijas Banka
These codes are distributed by Latvijas Banka for academic purposes. 
If in doubt, contact Latvijas Banka.

If useful, cite: 
Ginters Buss, 2016. "Financial frictions in Latvia," Empirical Economics, Springer, vol. 51(2), pages 547-575, September.

Works with Matlab R2013b, Dynare 4.4.3.

Baseline model without BGG financial frictions: 

baseline251.mod
baseline251_steadystate.m
baseline_steadystate_solvecore.m

Financial frictions model with BGG financial frictions:

finfric158.mod
finfric158_steadystate.m
finfric_steadystatesolvecore_noDelta3.m

Foreign SVAR computed/estimated separately:
foreign_svar50.mod
Its output: foreign_svar50_oo_.mat is called by baseline251.mod and finfric158.mod

Domestic SVAR is used in forecast comparison exercise:
lv_svar9.mod

All the above models require a data file: myOriginalData.mat


