Replication code and data for "Dynamic Causal Effects in a Nonlinear World: the Good, the Bad, and the Ugly" (arXiv:2411.10415, 2024) by Michal Kolesár and Mikkel Plagborg-Møller
- Execute save_shocks.do in Stata
- Execute compute_weights.do in Stata
- Execute plot_weights.do in Stata
- The generated figures will be stored in a folder called "fig"
Tested in Stata SE 17.0 on a Windows 11 PC
New applications can use the code in compute_weights.do off the shelf. The only modification needed is to change the file names of the Stata .dta files containing the shock series of interest.
We rely on the replication files for Valerie Ramey's (2016) handbook chapter. These files are stored in the folder data. They have not been modified in any way, except that files whose name ends in "_edit" have had parts commented out to avoid running unnecessary commands.
Kolesár acknowledges support by the National Science Foundation under Grant SES-2049356. Plagborg-Møller acknowledges support from the National Science Foundation under Grant SES-2238049 and from the Alfred P. Sloan Foundation.