This file contains replication files for "RELATIVE GOODS PRICES, PURE INFLATION, AND THE PHILLIPS CORRELATION" by Ricardo Reis and Mark Waton, August 2009.

All programs are in GAUSS and are in the subdirectory ..\gss.  Data files are ASCII or Excel files and are in the subdirectory ..\data

Data:

1. The inflation data are contained in the excel file DATAT.XLS.  (These data are 100*quarterly log differences).

2. The file pce_nominal_outseries.xls contains the names of the pce categories.

3. Macro variables are contained in a variety of ASCII files.  These are input using the program macvars_in.gss (where the series are internally documented)

Programs:

Factor Estimates:
(a) Principal Components Estimates with unit factor loading on a(t):
    These estimates are computed in PC_ESTIMATES.GSS

(b) Parametric Model
    The parameters for the models with the unit factor loading constraint are estimated in NPI_EM_4.GSS (user supplied parameters on the top of the program govern the specifics of the model).
    The parameters for the models without the unit factor loading constraint are estimated in NPI_EM_5.GSS (user supplied parameters on the top of the program govern the specifics of the model).



Table A1 (Data appendix): The table is constructed in DATA_APPENDIX.GSS

Table 2:  Results computed in Table2_pt1.gss and Table2_pt2.gss

Table 3:  Results computed in Table3_pt1.gss and Table3_pt2.gss

Table 4:  Results are computed in Table4_a.gss - Table4_f.gss

Table 5:  Results are computed in Table5_a_and_b.gss, Table5_c.gss and Table5_d.gss

Table 6:  Results in Table6_1.gss, Table6_2.gss, Table6_3_4.gss, Table6_5.gss, and Table6_6_7.gss
          Each row requires running the program once with the appropriate model parameters (given in the comments at the top of the program)


Figure 1 (and Bai-Ng) results: These are computed in bai_ng_figure1.gss. The figure is plotted in rw_figures_november09_2007.xls

Figure 2:  These results are computed in figure2.gss.The figure is plotted in rw_figures_november09_2007.xls

Figure 3:  Computation and graphs in figure3.gss

Figure 4:   Computation and graphs in figure4_a.gss and figure4_b.gss

