The enclosed set of files includes



1** In directory global: an f90 code that implements a global
approximation via splines to the equilibrium functions. There are
executables, output files that show the functions, and an Excel file
that shows the values of the GEE and its derivatives.



2** In directory local: two subdirectories. One is called Polynomials
and uses local-approximation polynomial solutions. This version of the
code as well as the executable is of order 4. The local subdirectory
uses linear (first-order) approximations only.



3** In directory output\paul: plots of the tax functions for all the
cases we consider (labor, capital, and total income) for both the
global and the local approximations and for the global only.



In the main directory there are some Excel files that are used in the construction of the graphs.



The code is written for Digital Fortran from COMPAQ and uses its IMSL
packages. To run with another vendor, some adjustments will have to be
made to the code. This will take very little time for any competent
programmer.