*********************************************************************************************************
* This ReadMe file refers to the data and computer codes of the paper 					*
* "Credit Markets, Relationship Lending, and the Dynamics of Firm Entry"          			* 
* by Qingqing Cao, Paolo Giordani, Raoul Minetti and Pierluigi Murro.             			*
*********************************************************************************************************


The folder "empirical" contains the following files:
	* Data_RED1-6.dta: Six .dta files containing the data for the empirical estimations.
	* Regr_RED.do: A .do file containing codes for the empirical estimations. 
	* DataDescriptionRED: a file describing the data and any transformation performed.
The programs are run by Stata 14 on iOS, and the expected computing time is about one minute. 

The folder "model" contains Matlab and Dynare codes for model simulations. 
One can run "run_CGMM.m" in the subfolder "modelfiles" to generate all figures and tables. 
It implements the following codes in the same subfolder:
	* parameter_set.m: to set parameter values.
	* main_result.m: to create Table 8 and 9, as well as Figure 2 and Appendix Figure 5.
	* compute_sensitivity_rho.m: to create Figure 3.a and Appendix Figure 3.
	* compute_sensitivity_gamma.m: to create Figure 3.b and Appendix Figure 4.
	* appendix_table8_rho.m: to create Appendix Table 8.
	* compute_sensitivity_pii.m: to create Appendix Figure 6.
	* CGMM.mod: called by the aforementioned codes to simulate the model dynamics.
All the programs for model simulations are run by Matlab R2021b and Dynare 5.0 on Windows 10. 
Total computing time is about 18 minutes.