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cstwMPC Replication Made using the ARK

To replicate estimates and output like those in the paper:

  1. Install Anaconda for Python 3
  2. In the Anaconda terminal (Windows) or Unix-like terminal (other OS):
    • Navigate to ./Code/
    • run pip install -r requirements.txt
  3. Run Spyder, and open ./do_min, ./do_mid.py, ./do_all.py, or ./do_custom.py
  4. Run the code by clicking the green arrow button.

Alternatively, you can execute any of the files from the command line, e.g.

`ipython do_min.py`

Running do_min.py will estimate two simple specifications of the model, with no aggregate shocks.

This takes a few minutes to run-- approximately 10-15 minutes on a typical computer.

Running do_mid.py will estimate the two main specifications reported in the paper

This takes several hours to run.

Running do_custom.py will let you choose exactly which model to estimate

Progress will be printed to screen when these files are run.

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The Distribution of Wealth and the Marginal Propensity to Consume

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