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Matlab-RBC-ISLMFE

Overview

This project, Matlab-RBC-ISLMFE, is a collection of MATLAB scripts designed to simulate and visualize various macroeconomic models. It focuses on implementing and analyzing the Real Business Cycle (RBC) model, the IS-LM model, and other related economic concepts using MATLAB.

Main Features

  1. RBC Model Simulation: Implements a basic Real Business Cycle model, simulating key economic variables over time.
  2. IS-LM Model Visualization: Provides scripts to plot IS and LM curves, demonstrating the equilibrium in goods and money markets.
  3. Labor Market Analysis: Includes scripts for analyzing labor demand, labor supply, and full employment conditions.
  4. Economic Variable Plotting: Offers various plotting functions to visualize economic variables such as consumption, capital, labor, technology levels, output, investment, wage rates, and capital return rates.

Setup Instructions

  1. Prerequisites:

    • MATLAB (The scripts were developed and tested on MATLAB, but the specific version is not mentioned in the provided files)
    • MATLAB Symbolic Math Toolbox (required for some scripts)

  2. Installation:

    • Clone this repository or download the MATLAB scripts to your local machine.
    • Ensure all files are in the same directory or add the directory to your MATLAB path.

  3. File Structure:

    • RBCtest.m: Main script for RBC model simulation
    • IS_LM_FE.m: Script for IS-LM-FE model visualization
    • IS_saving_investment.m: Script for savings and investment analysis in the IS framework
    • IScurve.m: Script for plotting the IS curve
    • MS_MD_LM.m: Script for money supply, money demand, and LM curve analysis
    • ND_NS_FE.m: Script for labor demand, supply, and full employment analysis

Usage Examples

  1. Running the RBC Model Simulation:

    • Open MATLAB and navigate to the project directory.

    • Run the RBCtest.m script:

      run RBCtest.m

    • This will simulate the RBC model and generate plots for consumption, capital, labor, technology level, output, investment, wage rate, and capital return rate over time.

  2. Visualizing the IS-LM Model:

    • Run the IS_LM_FE.m script:

      run IS_LM_FE.m

    • This will create plots showing the IS curve, LM curve, and the full employment line.

  3. Analyzing Savings and Investment:

    • Execute the IS_saving_investment.m script:

      run IS_saving_investment.m

    • This will generate plots showing the relationship between savings, investment, and the IS curve.

  4. Examining Labor Market Dynamics:

    • Run the ND_NS_FE.m script:

      run ND_NS_FE.m

    • This will produce plots of labor demand, labor supply, and the full employment condition.

Contributing

Contributions to this project are welcome. Please feel free to submit pull requests or open issues to discuss potential improvements or report bugs.

License

This project is licensed under the GNU General Public License v3.0. See the LICENSE file for more details.

Acknowledgments

This project is created for educational purposes to help understand and visualize key concepts in macroeconomics using MATLAB.