%%% Main Program



%%% Grid size 

N = 100;

%%% Wage grid

w    = linspace(0,1,N)' ;

%%% Probability distribution

p    = 1/N*ones(1,N) ;



beta = [0.1 0.5 0.9] ;

c    = [0   0.1 0.5] ;



Vbeta = zeros(N,3) ;

Vc    = zeros(N,3) ;



for i = 1:3

   Vbeta(:,i) = valit(beta(i),0,w,p) ;

   Vc(:,i)    = valit(.1,c(i),w,p) ;

end ;



figure(1) ;

subplot(2,1,1) ;

plot(w,Vbeta(:,1),'k-',w,Vbeta(:,2),'k--',w,Vbeta(:,3),'k-.') ;

xlabel('Wage','Fontsize',14) ;

ylabel('Value function','Fontsize',14) ;

grid on ;

title('Varying \beta, c=0','Fontsize',14) ;

leg{1} = ['\beta = ',num2str(beta(1))] ;

leg{2} = ['\beta = ',num2str(beta(2))];

leg{3} = ['\beta = ',num2str(beta(3))] ;

legend(leg) ;

subplot(2,1,2) ;

plot(w,Vc(:,1),'k-',w,Vc(:,2),'k--',w,Vc(:,3),'k-.') ;

xlabel('Wage','Fontsize',14) ;

ylabel('Value function','Fontsize',14) ;

grid on ;

title('Varying c, \beta=0.1','Fontsize',14) ;

leg{1} = ['c = ',num2str(c(1))] ;

leg{2} = ['c = ',num2str(c(2))] ;

leg{3} = ['c = ',num2str(c(3))] ;

legend(leg) ;



