%INFERIORI      Inputs for inferior.m
% 

%----------------------------------------------------------------------------
% Model Parameterization / Description
%
  nyr    = 5;           % (1)   Period length 
  nper   = 16;          % (2)   Number of periods in full simulation 
  np     = .3;          % (3)   Fraction of population married 
  nfs    = .2;          % (4)   Fraction of population single female
  beta   = 1.017^nyr;   % (5)   Discount factor 
  delh   = 1-.92^nyr;   % (6)   Depreciation of human capital type 1
  dele   = 1-.92^nyr;   % (7)   Depreciation of human capital type 2
  delk   = 1-.92^nyr;   % (8)   Depreciation of physical capital 
  kap1   = .24306;      % (9) | Parameters for Effective labor:   
  zet1   = .24306;      % (10)|     z1ij = b1i hij ^kap1 * eij ^zet1 * l1ij  
  kap2   = .166176;     % (11)|     z2ij = b2i hij ^kap2 * eij ^zet2 * l2ij
  zet2   = .166176;     % (12)|     i=f or m,   j =s or p
  b1f    = 1;           % (13)|
  b2f    = 1;           % (14)|
  b1m    = 1;           % (15)|
  b2m    = 1;           % (16)|
  lam    = .0619754;    % (17)  Weight on wives' utility 
  theta1 = .22;         % (18)  Capital share in market 
  mtech  = 1;           % (19)  Initial market technology level
  theta2 = .22;         % (20)  Capital share in home 
  htech  = 1;           % (21)  Initial home technology level
  util   = 2;           % (22)| Parameters of Utility:
  psi1   = .682094;     % (23)|    U = V^(1-sigma)/(1-sigma)
  psi2   = .429;        % (24)|    if util=1: V=(c1^psi1 *c2^psi2 *l^psi3)
  psi3   = .556544;     % (25)|    if util=2: V=(ces^(1-psi3)*l^psi3)
  sigma  = 6.783;       % (26)|    where ces=(psi1*c1^psi2 
                        %     |              +(1-psi1)*c2^psi2)^(1/psi2) 
  gpar1  = 1;           % (27)  g(.) parameters not currently relevant
  gpar2  = 1;           % (28)  NOTE: if added, adjust beta in dynamic
  gpar3  = 1;           % (29)     focs when growth is positive
  g      = .2;          % (30)  Government spending share 
  tauk   = .5;          % (31)  Tax on capital
  taulfp = .4;          % (32)  Initial tax on married females
  taulmp = .23;         % (33)  Tax on married male labor 
  taulfs = .4;          % (34)  Initial tax on single females
  taulms = .23;         % (35)  Tax on single male labor
  Tp     = 2*np;        % (36)| Rule for government transfers, examples:  
  Tfs    = nfs;         % (37)|    Equal per person:  Tp=2*np, Tfs=nfs 
                        %     |    All to married couples:  Tp=1, Tfs=0
                        %     |    All to males:  Tp=np/(np+nms), Tfs=0
  Tdp    = 2*np;        % (38)| Rule for discrimination transfers, ex:  
  Tdfs   = nfs;         % (39)|    (see examples for govt. transfers)
  gama   = (1.02)^nyr-1;% (40)  Trend growth in technologies
  gamp   = (1.01)^nyr-1;% (41)  Trend growth in populations
  qk1    = 1;           % (42)| Relative price of market investment goods
  qk2    = 1;           % (43)| Relative price of home investment goods
  qh     = 1;           % (44)| Relative price of type-h investment goods
  qe     = 1;           % (45)| Relative price of type-eta investment goods
                        %     | Restrictions on parameters (1=yes,0=no)
  res1   = 1;           % (46)|    kap1 = zet1  (if true, can't have both free)
  res2   = 1;           % (47)|    kap2 = zet2  (if true, can't have both free)
                        %     |    Note: make sure restrictions compatible
                        %     |          with pcomp/vcomp choices below

  csfp   = 100;         %       Needed for satiation examples
  csmp   = 100;         %
  csfs   = 100;         %
  csms   = 100;         %
  tsfp   = 100;         %
  tsmp   = 100;         %
  tsfs   = 100;         %
  tsms   = 100;         %
%
% Model Variables Set   / Description
%                                                                  
  l1fp   = .0973;       % (1)   Market labor input, paired female  ( 8.17 hr)
  l1mp   = .4914;       % (2)   Market labor input, paired male    (41.28 hr)
  l1fs   = .3451;       % (3)   Market labor input, single female  (28.99 hr)
  l1ms   = .3760;       % (4)   Market labor input, single male    (31.58 hr)
  l2fp   = l1mp-l1fp;   % (5)   Home labor input, paired female
  relw   = .5;          % (30)  Relative wage

%
% Model Variables with Unknown Values
%
  l2fs   = NaN; l2ms=NaN;
  c1fp   = NaN; c1mp=NaN; c1fs=NaN; c1ms=NaN; c2fp=NaN; c2mp=NaN;
  k1p    = NaN; k1fs=NaN; k1ms=NaN; k2p=NaN;  k2fs=NaN; k2ms=NaN;
  hfp    = NaN; hmp=NaN;  hfs=NaN;  hms=NaN;  
  efp    = NaN; emp=NaN;  efs=NaN;  ems=NaN;  
  T      = NaN; Td=NaN;

%
% Parameters to compute:
%

  pcomp  = [];

%
% Variables to fix (same number of elements as pcomp):
%
  vnocomp= [];

%
% Tax rates, technologies, and relative prices for periods 1 through nper
% Note: technologies equal to 1 in all periods implies 
%       that TFP = (1+gama)^t in both sectors
%


  Mtech  = [mtech;ones(nper-1,1)];
  Htech  = [htech;ones(nper-1,1)];
  Taulfp = [linspace(.40,.383,7)';linspace(.375,.353,4)';.353*ones(nper-11,1)];
  Taulmp = taulmp*ones(nper,1);
  Taulfs = Taulfp;
  Taulms = taulms*ones(nper,1);
  Qk1    = [qk1;ones(nper-1,1)];
  Qk2    = [qk2;ones(nper-1,1)];
  Qh     = [qh;ones(nper-1,1)];
  Qe     = [qe;ones(nper-1,1)];

  %Satiation benchmark:
  Taulfp = taulfp*ones(nper,1);
  Taulfs = Taulfp;
  gama   = (1.0194)^nyr-1; % We need to set growth slightly lower because
                           % large time intervals
  tsfp   = 13;
  tsmp   = 8;
  tsfs   = 13;
  tsms   = 12;
  csfp   = .049;
  csmp   = csfp;
  csfs   = csfp;
  csms   = csfp;
