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% README FOR MOSER AND YARED (2021)
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DESCRIPTION

This repository contains the replication code for Moser and Yared (2021). The following files are included in the repository, in the order in which they need to be run:

- master.m: Simulate an economy subject to optimal lockdown policy with and without commitment for Moser and Yared (2021). MATLAB master file that can also be called from Stata in master.do -- run this first!
   - simulations.m: Simulate the evolution of key variables and return summary statistics. Called by master.m.
      - backward_induct_comm.m: Return the continuation value and the optimal lockdown policy from time tt to TT for a government with commitment. Called by simulations.m.
      - backward_induct_nocomm.m: Return the continuation value and the optimal lockdown policy from time tt to TT for a government without commitment. Called by simulations.m.
      - gdp_vax.m: Compute the continuation value of GDP after arrival of the vaccine. Called by simulations.m.
      - utility_vax.m: Compute the continuation value of welfare after arrival of the vaccine. Called by simulations.m, backward_induct_comm.m, and backward_induct_nocomm.m.
      - sir_model.m: Return next period's health state, assuming no more new infections can occur after the arrival of the vaccine. Called by simulations.m, backward_induct_comm.m, backward_induct_nocomm.m, gdp_vax.m, and utility_vax.m.
- master.do: Create time-series and comparative-statics figures for an economy subject to optimal lockdown policy with and without commitment for Moser and Yared (2021). Stata master file that can also call master.m via MATLAB shell -- run this second!
   - time_series.do: Create time-series figures. Called by master.do.
   - comp_stat.do: Create comparative-statics figures. Called by master.do.


SYSTEM REQUIREMENTS

All codes were run on an iMac Pro (2017) with 3 GHz 10-Core Intel Xeon W processor and 128 GB 2666 MHz DDR4 memory running macOS Catalina Version 10.15.7. The codes were executed using MATLAB R2020b Update 3 (9.9.0.1538559) for all files in .M format and Stata/MP 15.1 for Mac (64-bit Intel) for all files in .DO format. The codes are compatible with other hardware, operating systems, and software versions.


COMPUTATION TIME

The expected computation time is approximately 20 minutes on a machine with the above-referenced specifications.


RANDOM NUMBERS

No random numbers are used in the analysis.


REFERENCES

Moser, Christian and Pierre Yared. 2021. "Pandemic Lockdown: The Role of Government Commitment." NBER Working Paper No. 27062 (conditionally accepted at Review of Economic Dynamics).