For "The U.S. Tax-Transfer System and Low-income Households: Savings, Labor Supply, and Household Formation"
 [ by Salvador Ortigueira and Nawid Siassi, 2021 ]

1. Data analysis for Survey of Consumer Finances (SCF)
2. Data analysis for Current Population Survey (CPS)
3. Computations for structural model

The package contains Matlab and Stata files. The programs were written in Windows.

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1. Code files for data analysis of Survey of Consumer Finances (SCF).

List of files:
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	mainSCF.m			-  Produces results from the SCF: Wealth by single males and married couples
	scf2013.mat			-  Contains relevant data from 2013 wave of the SCF
	assetsmale.mat			-  Contains data for Table 3 (Single males' asset distribution)

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1. Code files for data analysis of Current Population Survey (CPS).

List of files:
--------------

	Asec2012_2016Married.do		-  Contains the code to replicate the analysis in section 2
	Asec2014All.do			-  Contains the code to replicate the analysis in the other sections


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3. Code files for structural model.

Folder structure:   	The programs use a relative path structure. Please maintain the same folder structure to ensure that the relevant
			subscripts are found during computations.

Computation:		The script "main.m" solves the model under the benchmark calibration. After running the script, save the workspace
			into a file named "benchmark.mat" in order to prepare the results for producing tables and figures. Solving the model
			takes about 2-3 hours on a desktop PC.

List of scripts:
----------------

   1)   MAIN FOLDER:

	main.m				-   Main script to compute the benchmark model
	init.m				-   Initializes a bunch of different things
	fiscalparam.m			-   Set parameters for all tax and transfers programs
	statdist.m			-   Computes stationary distribution over assets, fertility, living arrangements
	aggregate.m			-   Computes a bunch of aggregate statistics for the steady state
	montecarlo.m			-   Simulates cohort of newborn females to generate life-cycle profiles
	main_elasticity_expandEITC.m	-   Simulates EITC expansion for purpose of estimating participation elasticity
	elasticity_expand.m		-   Modified version of fiscalparam.m where the parameters of the EITC are changed
	welfareCEU.m			-   Computes welfare effects measured in CEU (and saves them into data files)
	removeprograms.m		-   Computes policy functions if transfer programs are removed (section 5.2)
	fiscalparam_removeprograms.m	-   Modified version of fiscalparam.m where individual programs can be shut down

	transF.m			-   Computes taxes and transfers for lone mothers
	transX.m			-   Computes taxes and transfers for married couples
	transC1.m			-   Computes taxes and transfers for cohabiting couples (C1)
	transC2.m			-   Computes taxes and transfers for cohabiting couples (C2)

	results_plottransfer.m		-   Plot net transfer for HH with 2 children and prepare plots for appendix
	results_section44.m  		-   Prepares results for Section 4.4 (Tables 5+6, Figures 4+5, employment elasticity)
	results_section51.m  		-   Prepares results for Section 5.1 (Figures 6+7, Table 6)
	results_section52.m  		-   Prepares results for Section 5.2 (Figures 8-12)
	results_section60_figure.m	-   Prepares Figure 11 for Section 6 
	results_section60_tables.m	-   Prepares Tables 8 and 9 for Section 6
	results_welfare.m  		-   Computes welfare effects for policy reform (section 6)
	results_appendixE.m		-   Prepares results for Appendix E (Figures E1, E2, E3)


   2)   SUBFOLDER "\VFI\":

	HHproblems.m			-   This script lists all household problems and calls them one by one
	vfiF.m				-   Part 1 of value function iteration for single females
	vfiXa.m				-   Part 1 of value function iteration for married couples
	vfiC1a.m			-   Part 1 of value function iteration for cohabiting couples (C1)
	vfiC2a.m			-   Part 1 of value function iteration for cohabiting couples (C2)
	vfiXb.m				-   Part 2 of value function iteration for married couples
	vfiC1b.m			-   Part 2 of value function iteration for cohabiting couples (C1)
	vfiC2b.m			-   Part 2 of value function iteration for cohabiting couples (C2)
	refineF.m			-   Part 3 of value function iteration for single females
	refineX.m			-   Part 3 of value function iteration for married couples
	refineC1.m			-   Part 3 of value function iteration for cohabiting couples (C1)
	refineC2.m			-   Part 3 of value function iteration for cohabiting couples (C2)


   3)   SUBFOLDER "\Productivity\":

	This folder contains the Markov processes that discretize the VAR(1) process for labor productivity. The first
	number is the number of states for married males, the second number the number of states for single females, the
	"2" at the end refers to the fact that the number of states for married females is half of the number of states
	for single females.


   4)   SUBFOLDER "\Auxiliary\":

	estimwage.m		-   This script discretizes the VAR(1) process for labor productivities
	The other scripts perform a variety of different tasks that are called in the main files.


   5)   SUBFOLDER "\Reform\":

	See description.txt in this subfolder.


   6)   SUBFOLDER "\FixedMaleLabor\":

	See description.txt in this subfolder.