LQ BBCDL Model (verification)
==============================

Replicates results from "Macroeconomic Policy Games" by Martin Bodenstein,
Luca Guerrieri, and Joe LaBriola, Journal of Monetary Economics, 2019.


PURPOSE
-------
call_LQBBCDL.m verifies that the linear-quadratic (LQ) version of the
BB/CDL model produces the same solution as the nonlinear Ramsey solution
from the toolbox.  This serves as a cross-check on both implementations.


HOW TO RUN
----------
1. Run setup_toolbox once from the toolbox root if not already done.
2. Open MATLAB with this directory as the working directory.
3. Run setpathdynare6_5 (Dynare 6.5) or setpathdynare7_0 (Dynare 7.0).
4. Run call_LQBBCDL.


SUPPORTING FILES
----------------
LQBBCDL.mod              the linear-quadratic model
LQBBCDL_parameters.m     parameter values for the LQ model
LQBBCDL_steadystate.m    steady-state file for the LQ model

The nonlinear Ramsey comparison model (BBCDLmodelcomp_ramsey_c1pid_c2pid)
is loaded from the BBCDL_model_2ndorder folder.
