AN-SCHORFHEIDE MODEL README
===========================

The An-Schorfheide model requires 3 matlab files, 1 AiM source file, and 2 spreadsheets for use
with YADA. The spreadsheets contain the observed data and the specification of the prior for
the parameters (estimated and calibrated).

FILES:
======

data\AnSchorfheideData.wk1    Lotus 1-2-3 Spreadheet with 100 (simulated) observations on output growth,
                              inflation, and the nominal interest rate.
data\AnSchorfheidePrior.wk1   Lotus 1-2-3 Spreadsheet with definitions of the prior for the parameters
                              that are either estimated or calibrated. (The same information is available
                              in the Excel Spreadsheet AnSchorfheide.xls)
AnSchorfheideModel.txt        AiM source file with the specification of the state equations required for
                              for solving the model. The model is found in An and Schorfheide (2007),
                              "Bayesian Analysis of DSGE Models", Econometric Reviews 26, 113-172.
                              The log-linearized equations are given by (24)-(26), and (29)-(31) of the
                              paper. The setup of the model file has 7 state variables. The 6 given from
                              the 6 equations plus the lag of one state variables. In addition, the model
                              has 3 shocks to the state equations.
DataConstFile.m               Matlab m-file with the setup for reading the observed data from disk, the
                              determination of exogenous variables, the setting of variable names, sample
                              and data frequency.
MeasurementEqFile.m           Matlab m-file with the specification of the matrices needed to determine the
                              measurement equations of the state-space representation.
MoreAsParameters.m            Defines new parameters from those read into YADA via the spreadsheet with
                              the setup of the prior for the parameters.


This version: 9-1-2008.
