Add files via upload

Cho_Moreno_alternative.m

@@ -1,5 +1,5 @@
 % Alternative algorithm for computing the unique fixed-structure fundamental rational 
-% expectations solution using time iteration (along similar lines to Cho and Moreno (2011, JEDC))
+% expectations solution that satisfies the no-bubbles condition (along similar lines to Cho and Moreno (2011, JEDC)).
 % Written by Michael Hatcher ([email protected]). Any errors are my own.
 
 J = 10000;  %no. iterations
@@ -27,4 +27,4 @@
 
 %Solution matrices
 Omega_bar = OmegT; Gama_bar = GamaT; Psi_bar = PsiT;
-Omega_tild = OmegT_tild; Gama_tild = GamaT_tild; Psi_tild = PsiT_tild;
+Omega_tild = OmegT_tild; Gama_tild = GamaT_tild; Psi_tild = PsiT_tild;

Cho_and_Moreno.m

@@ -1,6 +1,6 @@
 % Based on Cho and Moreno (2011, Journal of Econ Dynamics and Control)
 % Recursive algorithm for computing the unique fixed-structure fundamental
-% rational expectations solution that satisfies the no-bubbles condition
+% rational expectations solution that satisfies the no-bubbles condition.
 % Written by Michael Hatcher ([email protected]). Any errors are my own.
 
 %Cho and Moreno (2011) method for computing fixed structure solutions
@@ -12,7 +12,7 @@
 
     A = B1 \ B2;  B = B1 \ B3;  C = B1 \ B4;  D = B1 \ B5;
 
-%Note R = 0_{m \times m} as shocks in e(t) are white noise. Persistent shocks can be included in x(t).
+%Note R = 0_{m \times m} as shocks in e(t) are mean-zero white noise. Persistent shocks can be included in x(t).
 %See Kulish and Pagan (2017, Journal of Applied Econometrics)
 
 %Taken from main file