function [mt_o, mt_coh, mt_k, mt_l]= OC3(varargin)

close all; 

bl_profile = false;      % Switch off profile if running a tester/calling from another function 

bl_saveimg = true; 

if(bl_profile) 

profile off;

profile on;

end 

addpath(genpath('/Users/sidhantkhanna/Documents/GitHub/BKS modified/')); 

%% Assigning Parameters

if ~isempty(varargin) 

    [ar_a,ar_z,ar_n ... 

        fl_alpha,fl_theta,fl_delta,fl_kappa,fl_r,fl_w,fl_phi,fl_ahi,fl_zhi, ... 

         it_zgridno, it_agridno,it_ngridno ... 

        ] = varargin{:}; 

    bl_print  = false; 

    bl_plot   = true; 

    bl_con    = false; 

else

    close all;

    fl_ahi         = 50;

    fl_zhi         = 2.2;

    it_agridno     = 50;

    it_zgridno     = 50;

    it_ngridno     = 2;

    ar_a = linspace(0,fl_ahi,it_agridno);

    ar_z = linspace(1.2,fl_zhi,it_zgridno);

    ar_n           = [0,1];

    fl_phi         = 0.5;

    fl_alpha = 0.4;

    fl_theta = 0.79-fl_alpha;

    fl_delta = 0.05;

    fl_kappa = 0;

    [fl_r,fl_w,fl_ahi] = ...

        deal(0.05,1.5,100);

    bl_print       = false;

    bl_plot        = true;

    bl_con         = true;

end 

fl_R = fl_r + fl_delta; 

[a_m,z_m] = meshgrid(ar_a,ar_z); 

a_m       = a_m'; 

z_m       = z_m'; 

a_m_3OC   = repmat (a_m, [1 1 it_ngridno]); 

z_m_3OC   = repmat (z_m, [1 1 it_ngridno]); 

%% Making Occupational choice

%for i = 0:0.5:1            

 %   fl_phi = i;

[k_star, l_star] = optikl(ar_a,ar_z, ... 

        fl_alpha,fl_theta,fl_delta,fl_kappa,fl_r,fl_w,fl_phi,fl_ahi,fl_zhi, ... 

         it_zgridno, it_agridno); 

k_star_3OC       = repmat (k_star, [1 1 it_ngridno]); 

l_star_3OC       = repmat (l_star, [1 1 it_ngridno]);  

 mt_wage         = fl_w.*ones(it_agridno, it_zgridno, it_ngridno); % Matrix for wages 

 mt_profit       = z_m_3OC.*(k_star_3OC.^fl_alpha).*(l_star_3OC.^fl_theta) - fl_R.*k_star_3OC - fl_w.*l_star_3OC - ((1+fl_r)*(fl_kappa)).*ones(it_agridno, it_zgridno, it_ngridno); 

 mt_o            = zeros(it_agridno, it_zgridno,it_ngridno);        % Matrix for Occupational Choice, 

 mt_o(mt_wage<mt_profit) = 2;                      % 2 for Formal Firm owner  

 mt_o((mt_wage(:,:,1)>mt_profit(:,:,1))) = 1;      % 1 for Informal Firm owner , 0 for wage worker     

 mt_income       = mt_profit; 

 mt_income(:,:,2)= max(mt_wage(:,:,2),mt_profit(:,:,2));         % Matrix for Income 

 mt_coh          = mt_income + a_m_3OC.*(1+fl_r);                % Matrix for COH 

 mt_k            = k_star_3OC;                         

 mt_l            = l_star_3OC; 

 mt_k(mt_o==0)   = 0; 

 mt_l(mt_o==0)   = 0; 

 if(bl_print) 

    disp('Below is mt_wage')

    disp(mt_wage);

    disp('Below is mt_profit ')

    disp(mt_profit );

    disp('Below is mt_o ')

    disp(mt_o);

    disp('Below is mt_income')

    disp(mt_income);

    disp('Below is mt_coh')

    disp(mt_coh);

    disp('Below is mt_k');

    disp(mt_k);

    disp('Below is mt_l');

    disp(mt_l);

 end 

 if(bl_plot)     

figure(1) 

colormap( [[0.6 0.45 0.2]; [ 0.5843    0.8157    0.9882]] ) % Brown = 1 (Informal firm owner) , Green = 2 (Informal firm owner), in order of increasing no. in matrix 

imagesc(ar_a,ar_z,mt_o(:,:,1)'); 

set(gca,'YDir','normal', 'FontSize',25) 

%title('OC no labor skills, Pink = SE, Yellow = Ent','FontSize',20);

xlabel('assets','FontSize', 30);  

ylabel('Entrepreneurial productivity','FontSize', 30); 

if(bl_saveimg) 

st_imgname = strcat('/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Households/figures/OC3/OC3_nolaskills',string(fl_phi),'.png');  

saveas(gcf, st_imgname) 

end 

figure(2) 

colormap( [1 0.6 1; [0.6 0.45 0.2]; [ 0.5843    0.8157    0.9882]]) % White = 0 (Worker), Brown = 1 (Informal firm owner) , Green = 2 (Informal firm owner) 

imagesc(ar_a,ar_z,mt_o(:,:,2)'); 

set(gca,'YDir','normal', 'FontSize',25) 

%title('OC with labor skills, White = worker, Yellow = Ent','FontSize',20);

xlabel('assets','FontSize', 30);  

ylabel('Entrepreneurial productivity','FontSize', 30); 

if(bl_saveimg) 

st_imgname = strcat('/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Households/figures/OC3/OC3_laskills',string(fl_phi),'.png');  

saveas(gcf, st_imgname) 

end 

end 

%end

if (bl_con) 

    [k_star, l_star, mt_id] = optikl(ar_a,ar_z, ...

        fl_alpha,fl_theta,fl_delta,fl_kappa,fl_r,fl_w,fl_phi,fl_ahi,fl_zhi, ...

         it_zgridno, it_agridno);

k_star_3OC       = repmat (k_star, [1 1 it_ngridno]);

l_star_3OC       = repmat (l_star, [1 1 it_ngridno]);

mt_id            = repmat (mt_id, [1 1 it_ngridno]);

 mt_wage         = fl_w.*ones(it_agridno, it_zgridno, it_ngridno);

 mt_profit       = z_m_3OC.*(k_star_3OC.^fl_alpha).*(l_star_3OC.^fl_theta) - fl_R.*k_star_3OC - fl_w.*l_star_3OC - ((1+fl_r)*(fl_kappa)).*ones(it_agridno, it_zgridno, it_ngridno);

 mt_o            = zeros(it_agridno, it_zgridno,it_ngridno);

 mt_o(mt_wage<mt_profit)  = 4;                       % Matrix for Occupational Choice, 4 for unconstrained formal firm owner

 mt_o(mt_o==4 & mt_id==2) = 3;                       % 3 for constrained formal firm owner

 mt_o((mt_wage(:,:,1)> mt_profit(:,:,1))) = 2;       % Assigning 2 for unconstrained informal firm owner   

 mt_o(mt_o==2 & mt_id==2) = 1;                       % Assigning 1 for unconstrained informal firm owner, 0 for worker

 mt_income       = max(mt_wage,mt_profit);           % Matrix for Income

 mt_i1=mt_income(:,:,1);  

 mt_p1=mt_profit(:,:,1); 

 mt_i1(mt_wage(:,:,1)>mt_profit(:,:,1)) = mt_p1(mt_wage(:,:,1)>mt_profit(:,:,1));      % assigning income for informal firm owner

 mt_income(:,:,1)= mt_i1;       

 mt_coh          = mt_income + a_m_3OC.*(1+fl_r);    % Matrix for COH

 mt_k            = k_star_3OC;                        

 mt_l            = l_star_3OC;

 mt_k(mt_o==0)   = 0;

 mt_l(mt_o==0)   = 0;

 if(bl_print)

    disp('Below is mt_wage')

    disp(mt_wage);

    disp('Below is mt_profit ')

    disp(mt_profit );

    disp('Below is mt_o ')

    disp(mt_o);

    disp('Below is mt_income')

    disp(mt_income);

    disp('Below is mt_coh')

    disp(mt_coh);

    disp('Below is mt_k');

    disp(mt_k);

    disp('Below is mt_l');

    disp(mt_l);

 end

 if(bl_plot)    

figure(1)

colormap([[0.3 0.2 0]; [0.6 0.45 0.2];[0.2    0.5    0.9]; [0.5843    0.8157    0.9882] ])

imagesc(ar_a,ar_z,mt_o(:,:,1)');

set(gca,'YDir','normal', 'FontSize',20 )

%title('OC with no option to work','FontSize',30);

xlabel('assets','FontSize', 25); 

ylabel('Entrepreneurial productivity','FontSize', 25);

if(bl_saveimg)

saveas(gcf, '/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Households/figures/OC3/OC3_5types_0.png')

end

figure(2)

colormap( [1 0.6 1;[0.3 0.2 0]; [0.6 0.45 0.2]; [0.2    0.5    0.9]; [0.5843    0.8157    0.9882] ] )

imagesc(ar_a,ar_z,mt_o(:,:,2)');

set(gca,'YDir','normal', 'FontSize',20 )

%title('OC with option to work','FontSize',30);

xlabel('assets','FontSize', 25); 

ylabel('Entrepreneurial productivity','FontSize', 25);

if(bl_saveimg)

saveas(gcf, '/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Households/figures/OC3/OC3_5types_1.png')

end

end

end 

if(bl_profile) 

profile off;

profile viewer;

st_file_name = '/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Profile/Households/OC3';

profsave(profile('info'), st_file_name);

end