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Simulation for Reputation and Sovereign Default

This file contains the code that solves the model and generates Figures 1 and 2 in the paper "Reputation and Sovereign Default" by Manuel Amador and Christopher Phelan.

Running the code

The code is in Julia. To run the code download and install julia.

Download this repository and navigate to its root folder.

Run julia and use the following commands to make sure that you have the necessary packages:

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

Then, run the script scripts/run.jl:

include(joinpath("scripts", "run.jl"))

The script solves the model, outputs the parameters, the value of T, the value of m, and generates Figure 1 and 2. The figures are saved in the output subdirectory.

Figure 1

Figure 1

Figure 2

Figure 2

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