The results are replicated by running the RUN1_baseline_solution.m script in Matlab / Octave (solution method by Jung, Teranishi and Watanabe, Journal of Money, Credit and Banking, vol. 37, 2005). Special thanks to Yuki Teranishi for sharing his codes. Results reported in the paper are written to the folders "Graphs" and "Tables". Isoquants of the loss function, reported in the paper, are drawn on the basis of the data in data_isoquants_com.csv (commitment) and data_isoquants_dis.csv (discretion) in the R script isoquants.R. Alternative solution strategies are implemented in: - RUN2_EW_solution.m (Matlab / Octave script) - Eggertsson & Woodford, 2003 (regime switching framework) - RUN3_GI_solution.m (Matlab / Octave script) - Guerrier & Iacoviello, 2015 (occasionally binding constraint) For the latter solution method, Dynare has to be preinstalled. The files "qzswitch.m" and "reorder.m" were taken from the web repositories of Christopher Sims. The files "setpathdynare442.m" and "setpathdynare433.m" and the folder "toolkit_files" are part of the OccBin toolkit developed by Luca Guerrieri and Matteo Iacoviello ("OccBin: A toolkit for solving dynamic models with occasionally binding constraints easily", Journal of Monetary Economics, 2015, pp. 22-38). All other files created by Piotr Ciżkowicz, Andrzej Rzońca and Andrzej Torój (2019).