%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% README for "Optimal Taxation in the Life Cycle with Human Capital Investment" BY Been-lon Chen and Fei-Chi Liang %%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%% ******************************* Software and Operating System used ******************************* Software: All codes were using MATLAB R2022b Operating System: Windows 10 ******************************** Code Description and Program order ******************************** #------ 1. Q1_SatausQuo: This folder contains all the codes to construct a status quo economy model, so that the model can determined those endougeous parameter listed in Table 1 and Table 2. The file "A_main" conducts the execution. #------ 2. Q2_Second_best: This folder contains all the codes to construct our second-best economy model. Figures 1-11 are based on the optimal solution of this model. The file "A_main" conducts the execution. #----- 3. Q3_ICCverification: This folder contains two subfolders. One subfolder named "FB" contains all the codes to test the incentive compatibility in the first-best economy. The result is shown in Figure 12(a). The other subfolder named "SB" contains all the codes to test the incentive compatibiltiy in the second-best economy. The result is shown in Figure 12(b). The file "A_main" conducts the execution in each subholder. #----- 4. Q4_plot_figure: This folder contains all the codes to plot Figure 1-12. Each figure has it executed code. #----- 5. Q5_figures: This folder contains all the figures used in the paper. #----- ******************************** Computation Time ******************************** 1. Q1_SatausQuo: 1hr 30min 16sec 2. Q2_Second_best:4hr 7min 45sec 3. Q3_ICCverification: less than 30 sec for each subholder 4. Q4_plot_figure: less than 30 sec ******************************** Reference ******************************** Been-lon Chen and Fei-Chi Liang. 2023. "Optimal Taxation in the Life Cycle with Human Capital Investment." (conditionally accepted at Review of Economic Dynamics).