Replication package for Too Levered for Pigou: Carbon Pricing, Financial Constraints, and Leverage Regulation

his replication package provides Matlab code to replicate the numerical example used in Section 4 of the article "Too Levered for Pigou: Carbon Pricing, Financial Constraints, and Leverage Regulation" in the Journal of Financial Econoimcs. Executing the code requires Matlab and plots Figure 1 in the main text and Figure 2 in the Internet Appendix.

To produce the figures in the paper, the code was executed using Matlab 2023b on a 2023 Macbook Pro.

Authors: Robin Döttling, Magdalena Rola-Janicka

Files:
- readme.txt
- solve_model.m