# Matlab Codes for "Steps in Industrial Development through Human Capital Deepening"

## Description

Matlab codes for simulated data graphed in Figures 3a, 3b, 3c, 4a, 4b, 4c, 5a, 6a, 6b, 6c of the article "Steps in Industrial Development through Human Capital Deepening", Economic Modelling.

## Files

## Steps to reproduce

Use Matlab programs. Here is Readme File for the Matlab codes for the paper titled “Steps in Industrial Development through Human Capital Deepening”, Economic Modelling. The Matlab files in the folder ‘BGP_Simulation_Three_Industries’ produce the results presented in Figures 3a, 3b, 3c, 4a, 4b, 4c, 5a (Optimization Toolbox required): 1. Step_Generator.m - This Matlab files generates the changing education productivity level and loops around the function file ‘g_0BGP2.m’, which solves for the BGP equilibrium of the model for each corresponding education productivity level. 2. g_BGP2.m - This Matlab function calls fsolve to solve for the BGP growth rate and the relative prices of goods of industries. The following Matlab files in the folder ’n_industry_Simulation’ produce the results presented in Figure 6a, 6b, 6c (Optimization Toolbox required): 1. Sector.m - This Matlab files generates the path of the number of new industries n that is a function of the changing education productivity level; it loops around the function files that solve for the BGP equilibrium of the expanding model for each corresponding education productivity level. 2. BGP_i_sector.m - The 15 function files where i=1, …15 call fsolve to solve for the BGP growth rate and the relative prices of goods of industries