clear all
set more off
set maxvar 10000
set mem 500m

*Set path
***

*cd ---- specify path to \data_replication\scf\proc_data\
local ourprocdata  "./our_proc"
local output "./output"

use taxsim2001.dta, clear
*use our processed data
*use "`ourprocdata'/taxsim2001.dta", clear



****************************************************************************************
****************************************************************************************

*Rent
rename X708 rent
rename X709 per_rent
replace rent=rent*12 if per_rent==4 //monthly
replace rent=rent*12*4.34 if per_rent==2 //weekly
replace rent=rent*12*2.17 if per_rent==3 //biweekly
replace rent=rent*4 if per_rent==5 //quarterly
replace rent=rent*2 if per_rent==11 //twice per year
replace rent=rent*6 if per_rent==12 //every two months
replace rent=rent*12*2 if per_rent==31 //twice a month
replace rent=. if per_rent==-1 //none
replace rent=. if per_rent==-7 //other

gen HELS=cond(X1005-X1004>0,0,max(X1005,0)) // some people report more debt than they took initially

*Create year first mortgage was taken
rename X802 year_main_mtg 
rename X902 year_main_mtg2 
rename X1002 year_main_mtg3
replace year_main_mtg=. if year_main_mtg==0
gen mtg_age = 2001 - year_main_mtg

replace year_main_mtg2=. if year_main_mtg2==0
replace year_main_mtg3=. if year_main_mtg3==0

gen mtg_age2=(2001-year_main_mtg2)
gen mtg_age3=(2001-year_main_mtg3)



*Create number of years agreed for payment for first mortgage
rename X806 nr_years_mtg_at_origin
replace nr_years_mtg_at_origin=. if nr_years_mtg_at_origin<=0


*Clean
drop J*
drop X*



********************************************************************************
*Create wealth variables
********************************************************************************
*Value of all houses
replace houses=. if houses<0
replace oresre=. if oresre<0
gen house_val=houses
*Homeownership status
gen ownership=housecl

*liquid assets
gen l_assets=max(othfin,0)+max(checking,0)+max(saving,0)+max(mma,0)+max(cds,0)+max(nmmf,0)+max(savbnd,0)+max(stocks,0)+max(bond,0)+oresre+nnresre   // oresre includes land contracts/notes, while nnresre doesn't

*mortgage debt
gen m_debt=max(NH_MORT,0)-max(HELS,0)
drop m_debt
gen m_debt=max(NH_MORT,0)+max(heloc,0)

*HELOC
gen helocs=max(heloc,0)+max(HELS,0)

*liquid debt
gen l_debt=max(ccbal,0)+max(resdbt,0)

*Wealth (net worth)
gen wealth=house_val+l_assets-l_debt-m_debt
gen hnworth=house_val-m_debt

*Age of head
gen age_head=age

*Generate positive house values
gen h1=house_val if house_val>=0

******
replace inc=inc/equiv
replace h1=h1/equiv
******

******************************
*Drop observation with wealth above 80th percentile
******************************
pctile pct = wealth [w=wgt], nq(100) genp(percent)
gen pk1=pct if percent==80
egen mean_pk1=mean(pk1)
drop if wealth>mean_pk1

*Drop households that are too young or too old
drop if age_head<25
drop if age_head>85

********************************************************************************************************************************************8
*Fraction of Homeowners
preserve
replace ownership=0 if ownership!=1
collapse (mean) ownership [weight=wgt]
gen res=round(ownership, 0.01)
gen title="Fraction of Homeowners "
save moment1.dta, replace
restore


*Mean   Wealth (all) / Mean Income (all)
preserve
replace wealth=wealth/equiv
collapse wealth inc [weight=wgt] 
gen res=wealth/inc
replace res=round(res, 0.01)
gen title="Mean   Wealth (all) / Mean Income (all)"
save moment2.dta, replace
restore

*Mean   House (all) / Mean Income (all)
preserve
collapse h1 inc [weight=wgt]
gen res=h1/inc
replace res=round(res, 0.01)
gen title="Mean   House (all) / Mean Income (all)"
save moment3.dta, replace
restore

*Mean mortgage debt/Mean Income
preserve
gen tdebt=m_debt/equiv 
collapse tdebt inc [weight=wgt] 
gen res=tdebt/inc
replace res=round(res, 0.01)
gen title="Mean mortgage debt/Mean Income"
save moment4.dta, replace
restore

*Fraction borrowers who extract (from our table 1, using PSID data)
preserve
gen res=0.08
gen title="Fraction borrowers who extract"
save moment5.dta, replace
restore

*Mean   Liq Assets (all) /Mean Income (all)   
preserve
gen liquid_wealth=(l_assets-l_debt)/equiv
collapse liquid_wealth inc [weight=wgt]
gen res=liquid_wealth/inc
replace res=round(res, 0.01)
gen title="Mean   Liq Assets (all) /Mean Income (all)   "
save moment6.dta, replace
restore

*Median liq assets (all) / mean income (all)
preserve
gen liquid_wealth=(l_assets-l_debt)/equiv
gen ALAI=liquid_wealth
collapse (median) ALAI (mean) inc [weight=wgt]
gen res=ALAI/inc
replace res=round(res, 0.01)
gen title="Median liq assets (all) / mean income (all)"
save moment7.dta, replace
restore

*Mean liq assets (own) / mean income (all)
preserve
egen meanpop = wtmean(inc), weight(wgt)
gen liquid_wealth=(l_assets-l_debt)/equiv
gen ALAI=liquid_wealth
collapse (mean) ALAI (mean) meanpop [weight=wgt]  if ownership==1
gen res=ALAI/meanpop 
replace res=round(res, 0.01)
gen title="Median liq assets (own) / mean income (all)"
save moment8.dta, replace
restore

*Median liq assets (own) / mean income (all)
preserve
egen meanpop = wtmean(inc), weight(wgt)
gen liquid_wealth=(l_assets-l_debt)/equiv
gen ALAI=liquid_wealth
collapse (median) ALAI (mean) meanpop [weight=wgt]  if ownership==1
gen res=ALAI/meanpop 
replace res=round(res, 0.01)
gen title="Median liq assets (own) / mean income (all)"
save moment9.dta, replace
restore

*fraction hand-to-mouth
preserve
gen liquid_wealth=(l_assets-l_debt)/equiv
gen adj_income1=inc/26
gen ownf=1 if liquid_wealth<=adj_income1
replace ownf=0 if ownf==.
collapse (mean) ownf [weight=wgt] 
gen res=ownf
replace res=round(res, 0.01)
gen title="fraction hand-to-mouth"
save moment10.dta, replace
restore

*fraction hand-to-mouth homeowners
preserve
replace ownership=0 if ownership!=1
gen liquid_wealth=(l_assets-l_debt)/equiv
gen adj_income1=inc/26
gen ownf=1 if liquid_wealth<=adj_income1
replace ownf=0 if ownf==.
collapse (mean) ownf [weight=wgt] if ownership==1
gen res=ownf
replace res=round(res, 0.01)
gen title="fraction hand-to-mouth homeowners"
save moment11.dta, replace
restore

*90 pct liq assets (own) / mean income (all)
preserve
egen meanpop = wtmean(inc), weight(wgt)
gen liquid_wealth=(l_assets-l_debt)/equiv
gen ALAI=liquid_wealth
collapse (p90) ALAI (mean) meanpop [weight=wgt]  if ownership==1
gen res=ALAI/meanpop
replace res=round(res, 0.01)
gen title="90 pct liq assets (own) / mean income (all)"
save moment12.dta, replace
restore

*mean wealth retirees to workers
preserve
gen young=1 if age_head<=65
replace young=0 if young==.
replace wealth=wealth/equiv
gen wealth_young=wealth if young==1
gen wealth_old=wealth if young==0  //i.e. old
collapse (mean) wealth_young wealth_old [weight=wgt] 
gen res=wealth_old/wealth_young
replace res=round(res, 0.01)
gen title="mean wealth retirees to workers"
save moment13.dta, replace
restore


*home production to consumption (value from BEA, source explained in the paper)
preserve
gen res=0.23
gen title="home production to consumption"
save moment14.dta, replace
restore



*********************************************************************************************************

forval x=1(1)14{
use moment`x'.dta, clear
keep res title
duplicates drop
save moment`x'.dta, replace
}

use moment1.dta, clear
forval x=2(1)14{
append using moment`x'.dta
}

order title res

***
cd ..

outsheet using "`output'/tab2_wealth.csv", replace c