Daniel Carroll
University of Virginia
drc7b@virginia.edu

This file explains how replicate Table 1 from "The Stationary Distribution 
of Wealth under Progressive Taxation" by Daniel Carroll and Eric Young
using the relevant files at the Review of Economic Dynamics website.


Files
-----------------

data files -  scf1992.xls, scf1995.xls, scf1998.xls, scf2001.xls, and scf2004.xls

prog files -  getscf.m  getcorr.m  calcstat.m


How to Use
-----------------

1) Load any of the data files into the Matlab workspace (For illustration, I will assume scf1992.xls and load it under the name 'scf1992.'  
For other years, replace 'scf1992' with the appropriate array name.).  

2) Pass the data array 'scf1992' to getscf.m by typing 'X = getscf(scf1992)'.  getscf.m will return an array (here called 'X') of reduced size.  
The rows of X are observations from the data file.  The columns of X are the SCF sample weight, total income, net worth, labor income, capital 
income, and hours worked, from left to right.

3) Pass X to getcorr.m by typing [t se] = getcorr(X).  t is a vector of correlations. 

t = [correlation between income/wealth 
     correlation labor income/capital income
     correlation income/wage]

se is a vector of the standard errors associated with correlation.




Note: calcstat.m is a simple m-file for calculating various statistics when entries have different population weights. It is used by getcorr.m.