The paper is the RatInattPlus.pdf file in this directory. The other pdf file is a set of slides from a talk at Princeton based on that paper.
The R files are those used to solve the paper's two-period saving problem. You can use them to experiment with other utility functions U, other distributions g of wealth, or different discretizations from those used in the paper.
- screpD:
- Calculates the objective function (expected utility minus lambda times mutual information between W and C) for a given f(c,w) joint pdf. Returns a list with much useful information.
- screpDCS
- Calls screpD, then strips everything from the list except function value, reverses the sign on that, and returns it. This is the kind of function csminwel.R expects.
- makeGraphs
- computes p(w|c) and p(c), makes grey-shaded contour graphs of p(w|c), p(c|w), and joint pdf f(c,w) and a line graph of p(c). Conditional distribution charts may need to be cleaned up to get rid of garbage corresponding to zero-probability conditioning values. The p(c) charts in the paper were done with lty="h", lwd=10, which are not implemented in this program.