CD_mA: Cobb-Douglas Monetary Demand Structure Matrix

In CGE: Computing General Equilibrium

Description

This function computes a Cobb-Douglas monetary demand structure matrix in a monetary economy.

Usage

CD_mA(alpha, Beta, p)

Arguments

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

Details

Some elements of Beta corresponding to money equal -1.

Value

A n-by-m matrix is computed which indicates the (monetary) demand structure of agents (firms or consumers) 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

alpha <- c(1, 1, 1)
Beta <- matrix(c(
  0.5, 0.5, 0.5,
  0.5, 0.5, 0.5,
  -1,  -1,  -1
), 3, 3, TRUE)
p <- c(1, 2, 0.1)
CD_mA(alpha, Beta, p)

Example output

          [,1]      [,2]      [,3]
[1,] 1.4142136 1.4142136 1.4142136
[2,] 0.7071068 0.7071068 0.7071068
[3,] 2.8284271 2.8284271 2.8284271

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