105/replication_package/UNIT_IES/make_Table_5.m

% Table 5 

clear,clc

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

Parameters;

% 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 = 3.85;
GAMMA2 = GAMMA1;
params(logical(symparams==sym('GAMMA1')))=GAMMA1;
params(logical(symparams==sym('GAMMA2')))=GAMMA2;

step_size=1;

% tolerance for the Newton solver
tolX = 1e-5; tolF = 1e-5; 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;

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 = 3.3;
GAMMA2 = 3.89;

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 = 2.9;
GAMMA2 = 3.98;

burn=5;

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 = 2.8;
GAMMA2 = 4.02;

burn = 5;

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 = 2.7;
GAMMA2 = 4.07;

burn = 5;

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 = 2.6;
GAMMA2 = 4.15;

burn = 5;

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 = 2.5;
GAMMA2 = 4.29;

burn=5;

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;

burn=5;

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];

save('benchmark')

%%
GAMMA1 = 2.3;
GAMMA2 = 5.50;

burn=5;

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];

%% display Table 5
clc

homefolder = pwd;
cd ..
diary on

disp('********** Table 5 **********')

Table_5 = [round(Table(:,[1,2,4,5]),3),Table_vol,round(Table_labor(:,[3,4,5]),3),round(Table_labor(:,[6]),2)]


%% display accuracy measure
disp('Appendix Table 1: Accuracy Measures for Table 5')

Accuracy = [round(Table(:,1),3),round(log10(Table(:,end-1:end)),1)]

diary off

cd(homefolder)