gemInformation_ProductQuality: An Example Illustrating Product Quality Information

In GE: General Equilibrium Modeling

An Example Illustrating Product Quality Information

Description

An examples illustrating product quality information.

Usage

gemInformation_ProductQuality(...)

Arguments

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

Examples

dst.firm.normal <- node_new("normal prod",
  type = "Leontief", a = 1,
  "lab"
)

dst.firm.inferior <- node_new("inferior prod",
  type = "Leontief", a = 0.5,
  "lab"
)

dst.quasifirm <- node_new("normal prod",
  type = "Leontief", a = 1,
  # a = 1 means that consumers cannot distinguish between normal and inferior products.
  # In this case, the calculated consumer utility is nominal.
  # The real utility of the consumer is lower than the nominal utility.
  # a = 10 is the opposite.
  "inferior prod"
)

dst.consumer <- node_new("util",
  type = "CD",
  alpha = 1, beta = c(0.5, 0.5),
  "lab", "normal prod"
)

ge <- sdm2(
  A = list(dst.firm.normal, dst.firm.inferior, dst.quasifirm, dst.consumer),
  B = matrix(c(
    1, 0, 1, 0,
    0, 1, 0, 0,
    0, 0, 0, 0
  ), 3, 4, TRUE),
  S0Exg = matrix(c(
    NA, NA,  NA, NA,
    NA, NA,  NA, NA,
    NA, NA,  NA, 100
  ), 3, 4, TRUE),
  names.commodity = c("normal prod", "inferior prod", "lab"),
  names.agent = c("normal firm", "inferior firm", "quasifirm", "consumer"),
  numeraire = "lab",
  maxIteration = 1,
  numberOfPeriods = 800
)

ge$p
ge$z
addmargins(ge$D, 2)
addmargins(ge$S, 2)

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