Author: In Hwan Jo and Tatsuro Senga
Paper Title: Aggregate Consequences of Credit Subsidy Policies: Firm Dynamics and Misallocation
Date: 23 Jan. 2019

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(Description)
This text file contains the information to reproduce results in Jo and Senga (2018) using MATLAB.
Although not necessary, MATLAB Parallel Computing Toolbox is recommmended for replication.

There are 4 directories in 'Jo_Senga_2018_RED_program_20190123.zip', which are summarized as below.
1. benchmark: the baseline model economy
2. logN_epsilon: model with an alternative firm productivity process, log-normal AR(1)
3. exo_entry_exit: models with exogenous firm entry and exit margins
4. extra_figures: data and figure programs for Fig. 7 to 11.

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(Instruction for Replication)
1. benchmark: run 'main_bench.m' for results in the economy without policy intervention. 
This reproduces Tab. 2, Tab. 3 (column 1), and Fig. 1 to 6. 
Note that the results for firm age distribution and lifecycle can be slightly different due to random numbers generated by MATLAB.

1a. The sub-directories 'size_policy' and 'age_policy' report results from credit subsidy policies. 
Run either 'main_bench_size.m' or 'main_bench_age.m', respectively for size- or age-dependent policies.
These programs reproduce Tab. 3 (columns 2 and 3), Tab. 4 and 5. 
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2. logN_epsilon: run 'main_logN.m' for results in the steady state without policies, which correspond to Tab. 5 (column 5).

2a. 'main_logN_size.m' in sub-directory 'size_policy' genereates results reported in Tab. 6 (column 6), and Tab. 7 to 9.
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3. exo_entry_exit: run 'main_pid.m' for the steady states in Tab. 6 (columns 3 and 7). 

3a. 'main_pid_size.m' in 'size_policy' reports the remaning results in Tab. 6.
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4. extra_figures: simulation data from different specifications of models are collected into .mat files. 
Each program genearte its corresponding figures, Fig. 7 to 11. 

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(Computation Time)
The computation time for each program may differ by environment. 
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- OS and software versions: Windows 8.1, MATLAB R2015b with Parallel Computing Toolbox
- System: Intel Xeon E5-2650v3 2.3GHz (20 physical cores), 64GB RAM
- Default parallelization: MATLAB with 18 workers
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main_bench.m: 813 secs (serial version takes about 7500 secs, mainly due to a large simulation)
main_bench_age.m: 625 sec.
main_bench_size.m: 518 sec.
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main_pid.m: 96 sec.
main_pid_size.m: 89 sec.
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main_logN.m: 720 sec.
main_logN_size.m: 340 sec.