1) The code is written in fortran and there are four main programs.  
All programs use the module contained in file para.f90.

2) Notice that the code makes calls to routines contained in the
IMSL libraries.

3) The executable was compiled using the ABSOFT 
PRO-FORTRAN 9.0 compiler with the following 
compilation options:
Target Type: Console Application
Warning Level: Level 3
Error Handling: Stop after 100
Max Internal Handle: 100000
Temporary String Size: 1024
Cache Optimizations: CACHE
Stack Size (Reserve): 0x10000000
Stack Size (Commit): 0x8000
Heap Size (Reserve): 0x100000
Heap Size (Commit): 0x1000


5) Given our choices for the dimensions of the state variables, and 
consequently, for the state space, the program mainB1.90 takes about 
four days on a Pentium 2.13 GHz

3) Program mainB1.f90 computes the steady states and the transition paths 
for both the benchmark and the reformed model economies. In this 
program, it is assumed that the government can borrow as much as 
it needs to finance the pension deficits once that the pension 
fund is depleted. 

4) At the end of the run the code generates 
a file that contains the values of the 52 parameters of the model 
economy, and several files with the output data reported in Tables 
5, 6, and 7, and in the Figures 1, 2, 4, Panel B of Figure 5, and 
Figure 6. These output files are:
MAR1997.dat
GB1997.dat
RETage1997.dat
PARA1997.dat
SS1997.dat
ELU1997.dat
DISABILITY1997.dat
MEASURES.dat
SHARE1997.dat
PAYG.dat
PAYGR.dat
Aggregates.dat
AggregatesR.dat
TaxRates.dat
TaxRatesR.dat

5) To obtain the remaining results that characterice retirement behavior,
the program retirement.f90 must be run.  This program uses as inputs the
distribution and the optimal decisions of the households in 1997 and in
2060 in the benchmark model economy, and the distribution and the optimal
decisions of the households in 2060 in the reformed model economy.  The
program outputs the files that contain the data reported in Table 8, Figure
3, and Panel A of Figure 5. These output files are: 
Retirees1997.dat
Retirees2060B.dat
Retirees2060R.dat

6) To obtain the results reported in Section 8, users must run program
mainB2.f90. This program computes the steady states and the transition
paths for the benchmark and the reformed model economies.  In this program,
the government increases the consumption tax rate as much as needed to
finance the pension deficits once that the pension fund is depleted.

7) At the end of the run mainB2.f90 outputs the time series of consumption
tax rates for the benchmark and the reformed model economies.  The
difference between these two series is reported in Panel A of Figure 7.
Program mainB2.f90 also computes and stores the consumption levels and the
distributions of households in the benchmark model economy between 2010 and
2060.  And it also computes and stores our welfare measure for every
household who is alive between 2010 and 2060.

8) To obtain the remaining results reported in Section 8, program 
mainwel.f90 must be run. It uses as input data the above output 
data. The final output is a file that contains the results reported 
in Figure 7. The output file is WelfareT.dat


9) The executable files are:
prDJVMES.exe: executable file of mainB1.f90
prDJVMES2.exe: executable file of retirement.f90
prDJVMES3.exe: executable file of mainB2.f90
prDJVMES4.exe: executable file of mainwel.f90