Central Banks Notes

Community-Led Econometrics Modeling Toolboxes for MATLAB

MATLAB is a programming platform used by economists and researchers in academia, central banks, research organizations, and more. The programming language provides an integrated development environment (IDE) and comprehensive tools for data preparation, analysis, visualization, and model building. You can also use a wide range of community toolboxes, written and supported by econometrics in the field, including Dynare, BEAR, and IRIS.

Dynare

Hosted by CEPREMAP, Dynare is a toolkit built on MATLAB for constructing and simulating dynamic stochastic general equilibrium (DSGE) models. Dynare offers a suite of tools and functions for specifying, estimating, conducting sensitivity analyses and generating simulations. With widespread, global adoption among economists and researchers, Dynare is used in diverse fields such as monetary policy analysis, fiscal policy analysis, and macroeconomic forecasting. Dynare has an intuitive meta-language that lets economists and researchers build and simulate complex DSGE models using familiar notation.

Download Dynare.

Four different graphs of impulse response functions from the Reis 2009 model.

BEAR

Developed by the European Central Bank (ECB), the Bayesian Estimation, Analysis, and Regression Toolbox (BEAR) is a comprehensive software package designed to streamline Bayesian econometric analysis of time-series data. Researchers and practitioners in macroeconomics, finance, and related fields use the toolbox for data preparation, estimation, model selection, and forecasting.

BEAR features intuitive syntax and thorough documentation, ensuring its accessibility to users. Continually updated to reflect the latest advancements in Bayesian econometrics, the toolbox enables users to conduct Bayesian econometric analysis effectively.

Download BEAR.

Graph of factor augmented VARs.

IRIS

The Iterative Relaxation-Based Identification and Simulation Toolbox (IRIS), developed by the Global Economic Projection Project, is a software package created to streamline the construction, estimation, and simulation of DSGE models.

The toolbox offers tools and functions for model specification, estimation, analysis, and simulation, positioning it as a comprehensive solution for researchers and policymakers in macroeconomics, finance, and related fields. IRIS features a straightforward and flexible syntax along with a comprehensive user guide.

Download IRIS.

Eight different graphs displaying VAR variables and residuals.

Building on MATLAB

Economists and researchers use MATLAB for developing specialized toolboxes and enabling:

  • Community support, resources, and collaboration
  • Integration with other tools and workflows
  • Flexibility, customization, and extension of intricate, computationally intensive tools
  • Efficiency for optimized features and functions with large, complex datasets and models