This directory contains materials used in

   Technology Capital and the US Current Account
   by Ellen McGrattan and Edward Prescott

To generate results in the paper and Appendix B of
the separate appendices (in Staff Report 407), run 
main.m in Matlab and choose the case of interest.
To explore alternative parameterizations, use
altparams.m.

NOTES:

(1) (Microsoft OS users only) For some versions of 
Matlab run on MS-OS, the load commands in results.m 
need to have the frontslashes (/) used on Unix 
machines changed to backslashes, e.g. replace

   load ./rawdata/dtaup.dat

with 
  
   load .\rawdata\dtaup.dat

(2) The first-order conditions in fdifoc.m are not
properly specified for time-varying dividend taxes.
Run errata.m which replaces the time series with an
average rate--the results are almost identical to 
those generated by main.m.

Ellen McGrattan
Original, June 2009
Revised, May 2018