gemExogenousPrice_EndogenousLaborSupply_3_3: An Example of Price Regulation and Endogenous Labor Supply...

In GE: General Equilibrium Modeling

An Example of Price Regulation and Endogenous Labor Supply (Example 9.5 of Li, 2019)

Description

This is an example of price regulation and endogenous labor supply. See CGE::Example9.5.

Usage

gemExogenousPrice_EndogenousLaborSupply_3_3(...)

Arguments

...	arguments to be passed to the function sdm2.

See Also

gemExogenousPrice

Examples

## the exogenous labor price with product as numeraire.
p.labor <- 0.625

dst.firm <- node_new("output",
  type = "CD",
  alpha = 1,  beta = c(0.5, 0.5),
  "land", "lab"
)

dst.land.owner <- node_new(
  "util",
  type = "Leontief", a = 1,
  "prod"
)

dst.laborer <- Clone(dst.land.owner)

ge <- sdm2(
  A = list(
    dst.firm,
    dst.land.owner,
    dst.laborer
  ),
  B = diag(3),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, 100, NA,
    NA, NA, 100
  ), 3, 3, TRUE),
  GRExg = 0,
  names.commodity = c("prod", "land", "lab"),
  names.agent = c("firm", "land.owner", "laborer"),
  maxIteration = 1,
  numberOfPeriods = 200,
  depreciationCoef = 0,
  numeraire = "prod",
  ts = TRUE,
  policy = function(time, state, state.history) {
    if (time > 1) {
      ratio <- state$p[3] / state$p[1] / p.labor
      last.labor.supply <- state.history$S[3, 3, time - 1]
      state$S[3, 3] <- last.labor.supply * ratio
    }

    state
  }
)

matplot(ge$ts.p, type = "l")
tail(ge$ts.S[3, 3, ])
plot(ge$ts.S[3, 3, ], type = "l")

GE documentation built on Nov. 8, 2023, 9:07 a.m.