gemLand_Labor_Capital_4_3: Some Examples of Market Clearing Paths Involving Land, Labor...

In GE: General Equilibrium Modeling

Some Examples of Market Clearing Paths Involving Land, Labor and Capital

Description

Some examples of market clearing paths involving land, labor and capital.

Usage

gemLand_Labor_Capital_4_3(...)

Arguments

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

Examples

depreciation.rate <- 0.05

dst.firm.production <- node_new("prod",
  type = "CD",
  alpha = 1, beta = c(0.4, 0.4, 0.2),
  "lab", "cap", "land"
)

dst.firm.capital.leasing <- node_new("cap",
  type = "Leontief", a = 1,
  "prod"
)

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

dstl <- list(dst.firm.production, dst.consumer, dst.firm.capital.leasing)
f <- function(policy = policyMarketClearingPrice,
              p0 = c(1, 1, 1, 1),
              z0 = c(10, 10, 10),
              numberOfPeriods = 100) {
  sdm2(
    A = dstl,
    B = matrix(c(
      1, 0, 1 - depreciation.rate,
      0, 0, 0,
      0, 0, 1,
      0, 0, 0
    ), 4, 3, TRUE),
    S0Exg = {
      S0Exg <- matrix(NA, 4, 3)
      S0Exg[2, 2] <- S0Exg[4, 2] <- 1
      S0Exg
    },
    names.commodity = c("prod", "lab", "cap", "land"),
    names.agent = c("firm.production", "consumer", "firm.capital.leasing"),
    numeraire = "prod",
    maxIteration = 1,
    numberOfPeriods = numberOfPeriods,
    p0 = p0,
    z0 = z0,
    policy = policy,
    ts = TRUE
  )
}

ge1 <- f()
ge1$p
ge1$DV
ge1$SV
matplot(ge1$ts.z, type = "l")

## a market clearing path with population growth
policy.population.growth <- function(time, state) {
  if (time >= 5) {
    state$S[2, 2] <- 1.01^(time - 4)
  }
  state
}

ge2 <- f(
  policy = list(
    policy.population.growth,
    policyMarketClearingPrice
  ),
  p0 = ge1$p, z0 = ge1$z,
  numberOfPeriods = 30
)
matplot(ge2$ts.z, type = "o", pch = 40)
matplot(growth_rate(ge2$ts.z), type = "o", pch = 20)

## a market clearing path with technology progress
policy.technology.progress <- function(time, A) {
  if (time >= 5) {
    A[[1]]$alpha <- 1.02^(time - 4)
  }
}

ge3 <- f(
  policy = list(
    policy.technology.progress,
    policyMarketClearingPrice
  ),
  p0 = ge1$p, z0 = ge1$z,
  numberOfPeriods = 30
)

matplot(ge3$ts.z, type = "o", pch = 20)
matplot(growth_rate(ge3$ts.z), type = "o", pch = 20)

## a market clearing path with population growth and technology progress
ge4 <- f(
  policy = list(
    policy.population.growth,
    policy.technology.progress,
    policyMarketClearingPrice
  ),
  p0 = ge1$p, z0 = ge1$z,
  numberOfPeriods = 30
)

matplot(ge4$ts.z, type = "o", pch = 20)
matplot(growth_rate(ge4$ts.z), type = "o", pch = 20)

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