INSTRUCTIONS FOR REPLICATION PACKAGE OF "MEANS-TESTED TRANSFERS AND INTERSTATE MIGRATION IN THE UNITED STATES"

Empirical: I use STATA (version 18) on Windows using a stantard computer to clean the datasets and generate the empirical results. You can find all relevant dofiles in “.\replication_files\empirical\code\stata”. 
           The folder contains both the raw and final datasets. There is no required order to run the files.

1.	Extract and clean data
	•	Run the file extract.do to clean the (i) SIPP, (ii) IPUMS CPS, and (iii) CPS march micro data. This file also cleans the aggregate statistics for means-tested programs.
	•	Execution time = 5427 seconds.

2.	Section 3. Empirical analysis
	•	Run the file main_empirical.do to reproduce the main empirical results for Section 3. The output is saved in “.\replication_files\empirical\output\section_3”. 
	•	This file generates the results for Figure 1, Table 1, and Table 2 (Table A4).
	•	Execution time = 260 seconds.

3.	Section 5. Quantifying the model 
	•	Run the file main_quantification.do to generate the targeted and untargeted moments for Section 5. The output is saved in “.\replication_files\empirical\output\moments”. 
	•	Execution time = 234 seconds.

Model: The overall program wrapper is written in Matlab using Windows and using a stantard computer. All relevant Matlab files are located in the directory “.\replication_files\model\code”. 
       There is no required order to run the files. The files named m_simul.m use the seed “rng(1187)” to generate the random numbers. 
       These numbers are needed to get the initial empirical distribution of workers across the state vector in the simulated economy. 

1.	Appendix D.1. Estimation of productivity risk
	•	Navigate to the subfolder “GMM”.
	•	Run the file main.m to reproduce the results for Appendix D.1. The output is saved in “.\replication_files\model\output\ moments\earnings_process”.   
	•	This file estimates the parameters of productivity risk by GMM and generates Figure D.1.
	•	Execution time = 11 seconds.

2.	Section 5. Quantifying the model 
	•	Navigate to the subfolder “quantification”.
	•	Run the file main.m to reproduce the results for Section 5. The output is saved in “.\replication_files\model\output\quantification”. 
	•	This file generates  the calibration targets in Table 3, as well as the fit of untargeted moments in Table 4, Figure 2, and Figure 3. 
	•	Execution time = 840 seconds.

3.	Section 6.1. Quantifying the effect of means-tested transfers on migration
	•	Navigate to the subfolder “counterfactual_effect_means_test”.
	•	Run the file main.m to reproduce the results for Section 6.1. The output is saved in “.\replication_files\model\output\counterfactual\effect_means_test”. 
	•	This file generates  Table 5, Table 6, Figure 4, and Figure 5. 
	•	Execution time = 584 seconds.

4.	Section 6.2. Welfare gains from reforming the federal administration
	•	Navigate to the subfolder “counterfactual_federal_coordination”.
	•	Run the file main.m to reproduce the results for Section 6.2. The output is saved in “.\replication_files\model\output\counterfactual\federal_coordination”.   
	•	This file generates  Table 7 and Figure 6.
	•	Execution time = 88 seconds.