Micro Risks and Pareto Improving Policies

The repository contains the code associated with the paper:

"Micro Risks and (Robust) Pareto Improving Policies with Low Interest Rates"

by Mark Aguiar, Manuel Amador and Cristina Arellano (2021).

Structure

The subfolder src contains the main source code.

The subfolder scripts contains contains both a julia script as well as the corresponding jupyter notebook that generates the figures and moments reported in the paper.

The subfolder output contains the figures generates by the script.

Running the code

The code is written in Julia. The code uses multithreading if available, so make sure to start julia with the ability to run multiple threads. See Julia Multi-threading.

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

julia> using Pkg 
julia> Pkg.activate(".")
julia> Pkg.instantiate()

The above will download the Julia packages needed to run the programs.

To run the main script that generates the figures and statistics, do:

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

The script takes 40 minutes to run a in a server with AMD EPYC 7542 32-Core Processor with 20 cores available and 32GB of RAM.

There is a Jupyter notebook associated with the script that can be run instead. Run Jupyter and navigate to scripts to locate the notebook and run it.