105/replication_package/UNIT_IES/Table_6_MU.m

% MU = 0.1

load('model')
addpath('files')

Parameters;
MU = 0.1; % popoulation share of agent 1

% make the vector of parameters
params = eval(symparams);

% distribution of hatyp
nodes = exp([G,G-B]); % hatyp
weights = [1-P,P]; % corresponding probabilities

T = 2000/period_length; % simulate 2000 years

% disaster shock 
rng('default')
disaster = double(rand(1,T+1)<P) + 1; % 1 for normal, 2 for disaster

GAMMA1 = 2.6;
GAMMA2 = GAMMA1;
params(logical(symparams==sym('GAMMA1'))) = GAMMA1;
params(logical(symparams==sym('GAMMA2'))) = GAMMA2;

% tolerance for the Newton solver
tolX=1e-7; tolF=1e-7; maxiter=10; testF=1e-5;
% tolerance for the least squares solver (if a simple Newton fails)
OPTIONS = optimoptions('lsqnonlin','TolX',tolX,'TolF',tolF,'MaxIter',100,'display','iter-detailed'); % use lsqnonlin if a simple Newton algorithm fails

solve_and_simulate;

%%%%%%%%%%%%%%%%% 

GAMMA1 = 2.6;
GAMMA2 = 4.15;

newparams = params;
newparams(logical(symparams==sym('GAMMA1'))) = GAMMA1;
newparams(logical(symparams==sym('GAMMA2'))) = GAMMA2;

burn=1;

correct_params;
simulate_with_disasters; % This file simulates the model with disasters. 
summarize_results;

Table = [GAMMA1,GAMMA2,RHO,mean_roe,mean_rb,mean_equity,mean_W1_share,mean_debt_to_assets,mean_debt_to_GDP,mean(abs(R_results(:))),max(abs(R_results(:)))];
Table_labor = [GAMMA1,GAMMA2,mean_equity_excluding_labor,mean_W1_share_excluding_labor,mean_debt_to_assets_excluding_labor,mean_debt_to_GDP];
Table_vol = [vol_roe,vol_rb];

%%%%%%%%%%%%%%%%%%%%%%%%

GAMMA1=2.5;
GAMMA2=4.29;

burn=1;
newparams=params;
newparams(logical(symparams==sym('GAMMA1')))=GAMMA1;
newparams(logical(symparams==sym('GAMMA2')))=GAMMA2;

correct_params;

simulate_with_disasters;

summarize_results;

Table = [Table;GAMMA1,GAMMA2,RHO,mean_roe,mean_rb,mean_equity,mean_W1_share,mean_debt_to_assets,mean_debt_to_GDP,mean(abs(R_results(:))),max(abs(R_results(:)))];
Table_labor = [Table_labor;GAMMA1,GAMMA2,mean_equity_excluding_labor,mean_W1_share_excluding_labor,mean_debt_to_assets_excluding_labor,mean_debt_to_GDP];
Table_vol = [Table_vol;vol_roe,vol_rb];

%%%%%%%%%%%%%%%%%%%%%
GAMMA1=2.4;
GAMMA2=4.54;

newparams=params;
newparams(logical(symparams==sym('GAMMA1')))=GAMMA1;
newparams(logical(symparams==sym('GAMMA2')))=GAMMA2;

params=newparams;
xt=max(x_results);
[coeffs,model]=tpsolve(coeffs,xt,model,params,c0,nodes,weights,tolX,tolF,maxiter,OPTIONS); % solve

simulate_with_disasters;

summarize_results;

Table = [Table;GAMMA1,GAMMA2,RHO,mean_roe,mean_rb,mean_equity,mean_W1_share,mean_debt_to_assets,mean_debt_to_GDP,mean(abs(R_results(:))),max(abs(R_results(:)))];
Table_labor = [Table_labor;GAMMA1,GAMMA2,mean_equity_excluding_labor,mean_W1_share_excluding_labor,mean_debt_to_assets_excluding_labor,mean_debt_to_GDP];
Table_vol = [Table_vol;vol_roe,vol_rb];

save('Table_6_MU','Table*')