Replication files for "Accounting for Limited Commitment between Spouses when Estimating Labor-Supply Elasticities" 
Christian Bredemeier, Jan Gravert, and Falko Juessen

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Empirical analysis
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(see Section 4 of the paper)

File: ReplicationPackageEmpiricalStata.zip

Software: Stata 15.1

Open "01_prepare_data.do" and adjust your path in line 6

1. Run "01_prepare_data.do" (only needs to be run once)
2. Run "02_LSE_regressions_baseline.do" to replicate:
	- Table 6, columns 1,2,3
	- Table 7, columns 1,2,3,5 and 6
	- Table 8
	- Table 9
	- Table 10
3. Run "03_LSE_regressions_ServicesShare.do" to replicate:
	- Table 6, column 4
4. Run "04_LSE_regressions_PC1.do" to replicate:
	- Table 6, column 5
5. Run "05_LSE_regressions_PC3.do" to replicate:
	- Table 6, column 6
6. Run "06_LSE_regressions_All_Items.do" to replicate:
	- Table 6, column 7
Running time is below 1.5 minutes.

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Monte-Carlo studies and BPS estimations
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File: ReplicationPackageModelMATLAB.zip

To replicate our results go to the MainFiles folder and run either "main_replication.m" or
"main_replication_fast.m". Our BPS estimation is based on the replication package of Wu and Krueger (2021).


"main_replication.m":
Solves and simulates all model variants and performs all estimations considered in the main text and the
appendix. The running time is about two days. The required disk space is about 80 GB


"main_replication_fast.m"
Uses saved results and replicates all tables and figures regarding to the model solution, Monte-Carlo studies,
and BPS estimations. In particular, it replicates Table 1-5, Table 12, and Figures 1-8. The running time is
less than 7 seconds.




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------------------------------------- Folders ------------------------------------------------------------------
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"AuxiliaryFiles/Couples":                       Files regarding to the couples maximization problem.

"AuxiliaryFiles/Data":                          Model inputs.

"AuxiliaryFiles/Estimation":                    Files to run the MC studies and BPS estimations. The files
                                                regarding the BPS estimation include modifications compared to
                                                the Wu and Krueger (2021) approach to deal with divorce and
                                                remarriage.

"AuxiliaryFiles/Figures":                       Files to create the figures in the paper.

"AuxiliaryFiles/Functions":                     Anonymous functions used in other m-files

"AuxiliaryFiles/MarkovChainDiscretization":     Files to discretize the stochastic processes of the model.

"AuxiliaryFiles/Model":                         General model files.

"AuxiliaryFiles/Simulation":                    Files to perform the simulations of the models.

"AuxiliaryFiles/Singles":                       Files regarding to the maximization problem of singles/divorcees.

"AuxiliaryFiles/Tables":                        Files to create the tables in the paper.

"Data":                                         If you run "main_replication.m", all results are stored in
                                                this folder. If you run instead "main_replication_fast.m"
                                                all data are loaded from this folder.

"MainFiles":                                    Main files to replicate our results.

"tex":                                          If you run "main_replication.m", all figures are saved in
                                                this folder as eps-files.

"WK_ReplicationPackage":                        The replication files of Wu and Krueger (2021).




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----------------- Files from other replication packages --------------------------------------------------------
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The folder "WK_ReplicationPackage" includes all files of the replication package of Wu and Krueger (2021).
All files in the folder "AuxiliaryFiles/MarkovChainDiscretization" are taken from other replication packages.
In particular, "fun_discretize_perm.m", "fun_discretize_transit.m", and "fun_tauchen_1d.m" are taken from Wu
and Krueger (2021). "lcrouwenhorst.m" is taken from the replication package of Fella et al. (2019).




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----------------- References -----------------------------------------------------------------------------------
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Fella, G., G. Gallipoli, and J. Pan (2019). Markov-chain approximations for life-cycle models. Review of
Economic Dynamics 34(3), 183-201.

Wu, C. and D. Krueger (2021). Consumption insurance against wage risk: Family labor supply and optimal
progressive income taxation. American Economic Journal: Macroeconomics 13 (1), 79–113.