Computer codes for "A Life-Cycle Model of Trans-Atlantic Employment Experiences"
by Sagiri Kitao, Lars Ljungqvist and Thomas Sargent

1. Codes are written in Fotran language, generated in the interface of Intel(R) Visual
Fortran Composer XE 2013, which runs with Microsoft Visual Studio 2010 on Windows 7.

2. MAIN.f90 is the program, where the computation starts and it calls subroutines that
compute policy functions of households (EVALUATE.f90), firms (EVALUATE_FIRMS.f90).

3. PARAMS.f90 defines values of parameters used in the computation and GLOBALS.f90
defines variables that will be assigned values.

4. In MAIN.f90, set ind_REGIME to 1 to compute equilibrium of Laissez Faire economy and
to 2 to compute Welfare State economy. Set ind_TURB to 0 to compute equilibrium in
tranquil times and to 1 for turbulent times.

5. Computation of households’ problem over a life-cycle in a LF regime takes approximately
10 minutes and a few minutes less for a WS regime. Firms’ problem takes several seconds.
Random numbers are not used in the computation of equilibrium. (It is used in the
transformation of Ben-Porath transition matrix to the model frequency but it does not
affect the matrix used or the results with the accuracy (1e-5) used.)