How can I implement TCA?

In this article we outline various ways to implement TCA, including software for Julia, Matlab, and Dynare.

We provide various packages to make the implementation of TCA easier. Currently, a Julia and Matlab (including Dynare) package exist. These packages all work similarly, with the Julia version being the most general. We also provide various tutorials that help in getting started.

If none of these packages are satisfactory for an application, then the only remaining option is to implement TCA from scratch. In most cases this will entail rewriting the transmission condition into a form that can be used to compute the transmission effect from either the systems form or directly from impulse response functions (IRFs). The Julia version could assist in the rewriting process – check the make_condition function for this. Once rewritten into an amendable form, transmission effects can be calculated along the way outlined in the appendix of Wegner et al. (2025).

If indeed none of the packages are able to compute the desired transmission effect, please get in contact with us. We try to make these libraries as general as we can, so finding a query that cannot be computed would provide us with key information on how to improve these packages.

Read the Paper

References

Wegner, Enrico, Lenard Lieb, Stephan Smeekes, and Ines Wilms. 2025. “Transmission Channel Analysis in Dynamic Models.” 2025. https://doi.org/10.48550/arxiv.2405.18987.