Bernanke, Gertler and Watson BPEA 1997

[TomDoan]

The attached zip runs the rather lengthy analysis from Bernanke, Gertler and Watson(1997), "Systematic Monetary Policy and the Effects of Oil Price Shocks", Brookings Papers on Economic Activity, no. 1, pp 91-157. Mark Watson has the original version of this on his web site, however, that was written using an old MS-DOS batch file and had a lot of hard-coded directory paths in it. This has been updated to be driven by a single RATS input file and uses the current naming conventions for RATS (and other) file types.

Note that this unzips into a large number of directories. If you want to run this, you need to leave the (relative) directory structure intact. Each figure and table uses its own data files and dumps output to its own directory.

The various subprograms themselves use fairly old ways of doing computations of VAR's and IRF error bands, and even for reading data, so if you're interested in anything they've done you may be better off starting from scratch as least as far as those parts are concerned.

(Note, to run this whole thing as written with WinRATS, you need the 9.20d build---to remove some of the hard directory references we needed to switch from the Windows \ to the more universal / that works on Mac and UNIX, and needed to make some changes to directory handling to do that).