R&D Dynamics and Corporate Cash Saving
Xiaodan Gao and Jake Zhao

All programs should execute in less than 10 minutes.

1) The Fortran program rd_cash_Gao_Zhao.f90 is compiled with Intel Fortran. The Intel MKL and MPI packages are also necessary. The following output should be generated:

   =====================
   r        ::    0.0300
   sigma    ::    2.0000
   tau_d    ::    0.1500
   tau_c    ::    0.3500
   tau_rd   ::    0.0600
   lambda_0 ::    0.0453
   lambda_1 ::    0.1251
   gamma_0  ::    0.0643
   gamma_2  ::    2.3799
   delta    ::    0.1948
   theta    ::    0.5930
   rho      ::    0.7573
   c_f      ::    0.6596
   wage     ::    0.2248
   =====================
   c_e      ::    2.4381
   diff     ::    0.0006
   ==================================================
   R&D    (m,s,a)    ::    0.0877    0.1218    0.5162
   R&D    (q1,q2,q3) ::    0.0349    0.0531    0.0909
   Cash   (m,s,a)    ::    0.1999    0.1965    0.5882
   Cash   (q1,q2,q3) ::    0.0472    0.2168    0.2567
   Shock  (m,s,a)    ::    1.2740    0.6967    0.8237
   Shock  (q1,q2,q3) ::    0.7550    0.9570    2.2930
   Sales  (m,s,a)    ::    2.8339    1.5498    0.8237
   Value  (m)        ::    5.9575
   Value  (q1,q2,q3) ::    3.1847    5.8447    9.3184
   Equity (m)        ::    0.2232
   Equity (q1,q2,q3) ::    0.0242    0.1118    0.3668
   Exit rate         ::    0.0186
   Zero (R&D, cash)  ::    0.0169    0.1435
   Corr R&D cash     ::    0.3262
   Error value       ::    0.1106
   ==================================================

2) Use STATA to replicate the real interest rate and markup rate in Panel A of Table 1:
   use data.dta and run RD_moments.do

3) Use STATA to replicate data moments of R&D, cash, and productivity in Tables 2-3 and 8-9:
   use data.dta and run RD_moments.do

4) Use Matlab to replicate Figures 1-3:
   run plot_compstat.m