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== LiuWZ regime-switching DSGE model.
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-- Setup Files
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model_lwz_setup.m: a setup file and the gensys solution for regime-switching DSGE model.
                   Search for <<> for all ad hoc changes.


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-- Main functions.
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plot_irfs.m: reads model_lwz_setup.m to plot impulse responses for
                constant-parameter and regime-switching models.  USED.
compute_volatility.m: reads model_lwz_setup.m to compute (1) a volatility change from bad regime to good regime
                         and (2) roles of persistence and shock variances. USED.
simul_lwz.m: (bad approach because it ignores higher-order autoregressive parts).  It generates long series
                for pi_t, y_t, and R_t and estiamtes the AR(1) process for the three variables.
                In the complex model, the AR(2) component, however, is large (0.68 for regime 1 but only -0.037
                for regime 2) for pi_t but small (less than 0.047 for both regimes) for R_t.  For y_t, it is 0.3 for
                regime 1 and 0.1 for regime 2.