Intertemporal Price Cap Regulation Under Uncertainty

&##160;File: value.f
File size: 8.6KB

Description of data:
This file contains Fortran code for the simulation program referred to in footnote 13 of the paper. It can be compiled using F77 or F90 compilers (or others), and requires the NAG sub-routines library. For example,
f77 –o Value –g Value.f -lnag
would put the compiled version in the file “Value”

File: value
File size: 39.2KB

Description of data:
This file contains the compiled version of Value.f using the f77 compiler.

File: in.dat
File size: 0.4KB

Description of data:
This file contains parameter values.
This is read at run time.

File: out.dat
File size: 1.5KB

Description of data:
This file gives the output actually produced by a run using the data from file “in”.

Purpose of the simulation
The results in the paper are derived from smooth pasting conditions – these are akin to first order conditions in static optimisation. The program can be used to verify (for particular parameter sets) that the results in the paper do indeed correspond to value maximising solutions. The details of how this is done is described in the preamble at the top of the file value.f.

Running the program
Obviously this requires access to Fortran compilers and the NAG library. Most University campuses support this. Running on a Unix system for example, once both “Value” and “in” are in the same directory, simply going to that directory and typing Value will run the program (assuming f77 is supported – if it is not, the Value.f program will need to be compiled using a supported compiler). The values used for parameters in file “in” can of course be varied.