CD_A: Cobb-Douglas Demand Structure Matrix

In CGE: Computing General Equilibrium

Description

This function computes the Cobb-Douglas demand structure matrix.

Usage

CD_A(alpha, Beta, p)

Arguments

alpha	a nonnegative numeric m-vector or m-by-1 matrix.
Beta	a nonnegative numeric n-by-m matrix whose each column sum equals 1.
p	a nonnegative numeric n-vector or n-by-1 matrix.

Value

A demand coefficient n-by-m matrix is computed which indicates the demands of agents (firms or consumers) for obtaining unit product or utility with Cobb-Douglas production functions or utility functions under the price vector p.

Author(s)

LI Wu <[e-mail]>

References

LI Wu (2019, ISBN: 9787521804225) General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press. (In Chinese)

Examples

CD_A(1, c(0.5, 0.5), c(1, 2))

#####
alpha <- c(5, 3, 1)
Beta <- matrix(c(
  0.6, 0.4, 0.2,
  0.1, 0.4, 0.7,
  0.3, 0.2, 0.1
), 3, 3, TRUE)
p <- 1:3
CD_A(alpha, Beta, p)

Example output

          [,1]
[1,] 1.4142136
[2,] 0.7071068
           [,1]      [,2]      [,3]
[1,] 0.43892821 0.6293917 0.8085158
[2,] 0.03657735 0.3146958 1.4149026
[3,] 0.07315470 0.1048986 0.1347526

CGE documentation built on July 8, 2020, 5:16 p.m.