PROGRAM DETAILS

The following programs have been used to generate 

(i)   the statistics from time series simulations in Tables 3-9
(ii)  the policy functions in figures 1-4 and 6-7
(iii) the time series graphs in figure 5    

A. Input files for all programs
·  ordata.txt: contains shock parameters
·  shocks.txt and shocks10000.txt: contain shock realizations for the simulations

B. Programs generating the policies and time series with identical households
·  decm.f90: solves the VM case
	  -  generates the policies decm.txt
	  -  generates the time series timedecm1.txt and timedecm2.txt
·  eucm.f90: solves the UM case
	  -  generates the policies eucm.txt
	  -  generates the time series timeeucm1.txt and timeeucm2.txt

C. Programs generating the policies and time series with heterogeneous households
·  defixn.f90: solves the VM-IS case
	  -  generates the benchmark policies defixn15.txt and defixn25.txt
	  -  generates the benchmark time series timeden15.txt and timeden25.txt
	  -  can be used to generate the policies with a risk aversion of ?=1.4, ?=1.8 and ?=2.2
	  -  can be used to generate the policies with a borrowing limit of B1=0.39
·  defixt.f90: solves the VM-BPS case
	  -  generates the benchmark policies defixn1t.txt and defixn2t.txt
	  -  generates the benchmark time series timeden1t.txt and timeden2t.txt
·  eufixn.f90: solves the UM case
	  -  generates the benchmark policies eufixn1.txt and eufixn2.txt
	  -  generates the benchmark time series timeeun1.txt and timeeun2.txt
	  -  can be used to generate the policies with a borrowing limit of B1=0.39
	  -  can be used to generate the policies with a risk aversion of ?=1.4, ?=1.8 and ?=2.2
·  ksfix.f90: solves the VM case
	  -  generates the benchmark policies in ksfix.txt
	  -  generates the benchmark time series in timeks1.txt and timeks2.txt
	  -  can be used to generate the policies with a borrowing limit of B1=0.39
	  -  can be used to generate the policies with a risk aversion of ?=1.4, ?=1.8 and ?=2.2