"Tax Cuts in Open Economies" by Alejandro Cunat, Szabolcs Deak and Marco Maffezzoli
March 2021
Corresponding Author: Szabolcs Deak

The code requires Matlab to run. We have developed the code using Matlab on Windows, but it should run without any problems on Mac OS or Linux. The expected computation time is under 2 minutes for any of the scripts listed belows. No random numbers are used in generating our results.

Main.m - This script calibrates the model, solves the coefficients of the policy functions, and simulates the model. This script needs to be run before anything else.

Replicating figures and tables in the main text:
Figure3.m        - Loads in the model solved by Main.m and replicates Figure 3 in the paper.
Figure4.m        - Loads in the model solved by Main.m and replicates Figure 4 in the paper.
Figure5.m        - Loads in the model solved by Main.m and replicates Figure 5 in the paper.
Figure6.m        - Loads in the model solved by Main.m and replicates Figure 6 in the paper.
Figure7.m        - Loads in the model solved by Main.m and replicates Figure 7 in the paper.
Figure8.m        - Loads in the model solved by Main.m and replicates Figure 8 in the paper.
Table1.m         - Loads in the model solved by Main.m and replicates Table 1 in the paper.

Appendix:
Table2.m         - Loads in the model solved by Main.m and the sectorial data from 'US Labor share.xls' and replicates Table 2 (Appendix C) in the paper.
Table3_top.m     - Loads in the model solved by Main.m and recalibrates it to replicate the top half of Table 3 (Appendix D) in the paper.
Table3_bottom.m  - Loads in the model solved by Main.m and solves it for different values of the trade cost parameter to replicate the bottom half of Table 3 (Appendix D) in the paper.
Figure9.m        - Loads in the model solved by Main.m and replicates Figure 9 (Appendix D) in the paper.
Table4.m         - Loads in the model solved by Main.m and solves it for different elasticity of intertemporal substitution values to replicate Table 4 (Appendix D) in the paper.