This directory contains replication files for "A Static Capital Buffer is Hard to Beat" by Matthew Canzoneri, Behzad Diba, Luca Guerrieri and Arsenii Mishin.

If re-using these codes, please cite as:Matthew B. Canzoneri & Behzad T. Diba & Luca Guerrieri & Arsenii Mishin, 2020.
"Optimal Dynamic Capital Requirements and Implementable Capital Buffer Rules,"
Finance and Economics Discussion Series 2020-056, Board of Governors of the Federal Reserve System (U.S.).
<https://ideas.repec.org/p/fip/fedgfe/2020-56.html>

Before running any of the main programs adapt the setpath_windows.m file to point to the local installation of Dynare and of the OccBin library.

The OccBin library (occbin_20250617) is enclosed in this directory. It is updated from the original library to make it consistent with Dynare version 6.2 and 6.3 that we used to replicate our results.

All the figures and tables can be replicated invoking one of the 
files starting with call_...

Figure 1 --- call_figure_1.m
Figure 2 --- call_failure_rates_quarterly.m
Figure 3 --- call_figure_3.m
Figure 4 --- call_figure_4.m
Figure 5 --- call_figure_steadystate_welf.m
Figure 6 --- call_figure_TFP.m
Figure 7 --- call_figure_isp.m
Figure 8 --- call_figure_tau 
Figure 9 --- call_grid_buffers

Tables 1, 2, and 3 call_moment_matching_spreads.m
Table 4  --- call_optimize_simple_rules.m
And for other rules mentioned in the text, call_simple_rules.m



