Micro Risks and Pareto Improving Policies

The repository contains the code associated with the paper:

"Micro Risks and (Robust) Pareto Improving Policies"

by Mark Aguiar, Manuel Amador and Cristina Arellano (2024).

Leonardo Barreto provided excellent research assistance and greatly contributed to this code base.

Structure

The subfolder src contains the main source code.

The subfolder scripts contains contains the main julia script.

The subfolder output contains the figures and tables generated by the script.

Running the code

The code is written in Julia, tested on Version 1.10.4 (2024-06-04).

IMPORTANT: The code uses multithreading, if available, for a siginificant speed up, so make sure to start julia with the ability to run multiple threads. To let Julia decide the number of threads to use, start with the option -t auto:

$ julia -t auto

See Julia Multi-threading for details.

To run the code, open a julia prompt at the root of this repository. Then type:

julia> include(joinpath("scripts", "main.jl"))

The script will

• Automatically download and install all the necessary packages.

• Delete all of the output in the "output" directory.

• Repopulate the output directory with the figures and tables.

The script (once the necessary packages are installed) takes approximately 30 minutes to run on a Surface Pro 8 laptop with

• Processor: 11th Gen Intel(R) Core(TM) i7-1185G7 @ 3.00GHz, 2995 Mhz, 4 Core(s), 8 Logical Processor(s),

• 16GB of RAM,

• Running Windows 11 Pro.