This is the instruction for the two files for the computation work of 
Igarashi "Distributional effects of hiring through networks."

There is one GAMS (The General Algebraic Modeling System) file and one R file. 

- Igarashi2016.gms

To run this file, you need GAMS. For GAMS, see https://www.gams.com/.
Running time is approximately 10 seconds.

- Igarashi2016_plot.R
To run this file, you need R. For R, see https://www.r-project.org/.
Running time is approximately 3 seconds.


The paper conducts two kinds of exercises, computing the stationary equilibrium and the effect of the policy (i) for various values of the targeted wage and (ii) for various values of n1, corresponding figure 1 and figure 2 respectively.

At the beginning of the GAMS file, set Q=1 for (i) and Q=2 for (ii).
Running the GAMS file will generate an output file named Policy_experiment_wage.put if Q=1 and an output file named Policy_experiment_n1.put if Q=2.

Once these output files are produced, you can run the R file to extract the computation result and to plot the results. To run the R file, make sure that the two GAMS output files have been saved in the working directory.