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Intergenerational Debt Dynamics Without Tears
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Date: 05.17.2019
Author: Frederik Bjoern Christensen


The follwing ReadMe file provides an instruction for running the codes that generate 
the results for Andersen & Bhattacharya (2019).

The codes are divided into two parts; one for exogenous (Section 8.2) and one for endogenous labor (Section 8.3).

In both instances, MATLAB is required.

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List of variables
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S = Savings
Y = Output
E = Total Education Expenditure
N = Private Education Expenditure

H = Human Capital
L = Labor

K = Capital Stock
k = Effective Capital
R = The Interest Rate
w = The Wage

t = Proportional Tax Rate
B = Government Bonds

U = Utility
co = Consumption as Old
cm = Consumption as Middle-aged

Fval = Error in Numerical Solution


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Exogenous Labor
----------------
1. Open MATLAB and set the path to "A&Bcodes". Choose "folders and subfolders".

2. Open the folder "ExogenousLabor"
	- This contains all the necessary files to simulate the introuction of the 
	  package coming from the CMA SS assuming exogenous labor.
	- The file "SIMEXO.m" is the Main.
	- The file "kSIMULEXLF.m" is a function which numerically solves any equilibrium
	  on the adjustment path towards the LF SS.
	- The file "SIMPOLICY.m" is a function which numerically solves any equilibrium
	  on the adjustment path towards the SS with policy.


3. Open the file "SIMEXO.m"
	- Parametervalues can be tweaked in the top of the file.
	- Note that large tweaks to the given configuration may not be feasible.

4. Run the code (runtime could vary between 1-2 minutes) 


-----------------
Endogenous Labor
-----------------
1. Open MATLAB and set the path to "A&Bcodes". Choose "folders and subfolders".

2. Open the folder "EndogenousLabor"
	- This contains two folders.
		2.1 "NoAdjustment" simulates implementation from the LF SS.
		2.2 "Adjustment" simulates implementation from outside the LF SS.

3. Open the desired folder

	3.1 Open the file "SIMENDO.m"
	- This file simulates the introduction of the package coming from the CMA SS.
	- The function "INAUGURATION.m" numerically solves the equilibrium in the first 
          period where special conditions apply. These are described in "SIMENDO.m".
	- The function "ENDOPOLICY.m" numerically solves the equilibrium in any period 
	  after the inaugural period.
	- The function "NEWSSFUNC"computes the SS separately and is used for verification.
	- Parametervalues can be tweaked in the top of the file
		* Note, however, that too extreme changes in parameters might significantly
		  impact the ability of the code to run.
	- In the Section "Creating a Path for Labor", we create an initial exogenous path
	  for labor. This initial path is updated numSim=10 times.
		* For a feasible configuration this should SUFFICE to ensure convergence.
	- The final path is the result of of a double-loop over numSim and numPeriods.

	3.2 Open the file "ParetoAdjustment.m"
	- The function "ParetoPath" simulates the path of the LF economy.
		* This calls "LaissezFaire.m" and "LF.m"
	- The parameter, "numPeriodsInit", denoted the number of periods before
	  implementation of the package. 
		* Most likely, you want to set this to 2 or 3.
		* If set too high, results boil down to "NoAdjustment.m"
		 	--> Doing so could serve as a convenient sanity check if desired.
	- The parameter "numPeriodsPost" denotes the number of periods after implementation.
		* Note here that the intertemporal pareto criterion is adjusted to reflect
		  the utility level in the appropriate point on the adjustment path
		  and not to the LF SS level.

4. Run the dode (runtime could vary depending on numPeriodsInit & numPeriodsPost)

		  the folder structure of your computer.