The Matlab script file japan_benchmark_final.m reads in the data file datafile.txt, implements the shooting algorithm used in Hayashi and Prescott, makes calls to two function files fvalue_ini2.m and fvalue2.m to solve nonlinear equations, solves the model and produces Figure 2 in the paper. datafile.txt is a 45 by 9 data matrix. See below for more details: year = datafile(b:45,1); gamma = datafile(b:45,2); % growth rate of TFP factor pop = datafile(b:45,3); % population growth rate gov = datafile(b:45,4); % government spending share hh = datafile(b:45,5); % hours input ee = datafile(b:45,6); % employment rate delta = datafile(b:45,7); % depreciation rate tau = datafile(b:45,8); % capital income tax jsrate = datafile(b:45,9); % actual Japanese net national saving rate c_t, h_t, and k_{t+1} for t>=0 are endogenous variables obtained by using the equilibrium conditions of the model. k_0 is a given initial condition c_0 is a guess, the subject of shooting h_0 is given by fvalue_ini2.m k_{t+1} (for t>=0) is given by lines 142 and 143 in the main code c_t and h_t (for t>=1) are given by fvalue2.m