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SetupPar.m
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SetupPar.m
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function [par] = SetupPar()
par.ndim = 2;
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
% 1. demograhpics and preferences %
%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%%
par.T = 20; % life-span
% preferences
par.beta = 0.98; % discount factor
par.rho = 2.00; % risk aversion
par.alpha = 0.25; % disutility of labor
par.sigma = 0.00; % variance of taste shock
% 3d model
par.gamma = []; % labor supply elasticity
par.varphi = []; % scaling of disutility of labor supply
par.rk = []; % return rate on human capital
par.delta = []; % depreciation of human capital
par.rk_retire = []; % percentage one-time lump sump income at retirement
par.lmax = 0; % maximum l, only active if > 0
%%%%%%%%%%%%%
% 2. income %
%%%%%%%%%%%%%
par.yret = 0.50; % retirement income
par.var_eta = 0.00; % variance of income shock when working
%%%%%%%%%%%%%%%%%%%%%%%%%%%
% 3. borrowing and saving %
%%%%%%%%%%%%%%%%%%%%%%%%%%%
par.Ra = 1.02; % gross return on liquid assets
par.Rb = 1.04; % gross return on illiquid pension assets
par.chi = 0.10; % scaling factor in pension deposit function
%%%%%%%%%%%%%%%%%%
% 4. state space %
%%%%%%%%%%%%%%%%%%
% solution algorithm settings
par.max_threads = 1; % maximum number of threads in mex-files
% VFI
par.N_guess_vfi = 75; % guesses in brute force VFI
par.do_NLopt = 1; % use NLopt in VFI
% EGM
par.save_segments = 0; % saves additional data
par.egm_extrap_add = 2; % indexes added to bounding box
par.egm_extrap_w = -0.25; % minimum weight for extrapolation
par.delta_con = 0.001; % change of choice in tests
par.do_dcon_x = 1; % dcon check of deviation from constraint
par.do_acon_x = 0; % acon check of deviation from constraint
par.do_con_x = []; % con check of deviation from constraints
% general
par.phi_m = 1.1; % non-linearity of m and a grids
par.phi_n = 1.25; % non-linearity of n and b grids
par.phi_k = []; % non-linearity of k and q grids
% retirement
% pre-decision states
par.Nm_ret = 500;
par.m_max_ret = 50;
% post-decision states
par.Na_ret = par.Nm_ret-floor(par.Nm_ret*0.20);
par.a_max_ret = 25;
% working
par.Nm = 600;
par.m_max = 10;
par.n_add = 2;
par.k_max = [];
% interpolant (w, wa, wb)
par.pd_fac = 2;
par.a_add = -2;
par.b_add = 2;
par.q_add = [];
% egm
par.acon_fac = 0.25;
par.con_fac = 0.50;
% shocks
par.Neta = 4;
%%%%%%%%%%%%%%%%%
% 5. simulation %
%%%%%%%%%%%%%%%%%
par.simN = 10000;
par.simT = par.T;
par.sim_seed = 9210;
%%%%%%%%%%%%%%%%
% 6. graphical %
%%%%%%%%%%%%%%%%
par.fontsize_small = 18;
par.fontsize_big = 22;
par.color = cell(5);
par.color{1} = [3.0/255.0 103.0/255.0 166.0/255.0];
par.color{2} = [242.0/255.0 62.0/255.0 46.0/255.0];
par.color{3} = [3.0/255.0 166.0/255.0 166.0/255.0];
par.color{4} = [242.0/255.0 131.0/255.0 68.0/255.0];
par.color{5} = [242.0/255.0 100.0/255.0 48.0/255.0];
par.color_grey = [65.0/255.0 68.0/255.0 81.0/255.0];
par.fig_max_m = 5;
par.fig_max_n = 5;
par.fig_min_k = [];
par.fig_max_k = [];
par.print = 0;
end