gemMoney_3_3: Some 3-by-3 General Equilibrium Models with Money

In GE: General Equilibrium Modeling

Some 3-by-3 General Equilibrium Models with Money

Description

Some 3-by-3 general equilibrium models with money as a medium of exchange and a means of payment.

Usage

gemMoney_3_3(...)

Arguments

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

References

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

Examples

interest.rate <- 0.25

dst.firm <- node_new("prod",
                     type = "FIN", rate = c(1, interest.rate),
                     "cc1", "money"
)
node_set(dst.firm, "cc1",
         type = "CD", alpha = 2, beta = c(0.5, 0.5),
         "prod", "lab"
)

dst.laborer <- dst.money.owner <-
  node_new("util",
           type = "FIN", rate = c(1, interest.rate),
           "prod", "money"
  )

ge <- sdm2(
  A = list(dst.firm, dst.laborer, dst.money.owner),
  B = diag(c(1, 0, 0)),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, 100, NA,
    NA, NA, 100
  ), 3, 3, TRUE),
  names.commodity = c("prod", "lab", "money"),
  names.agent = c("firm", "laborer", "money.owner"),
  numeraire = "prod"
)

ge$p
ge$z
ge$D
ge$S
ge$DV
ge$SV

## Take money as numeraire, that is, let the asset price of money equal to 1,
## and let the interest per unit of money equal to the exogenous interest rate.
ge2 <- sdm2(
  A = list(dst.firm, dst.laborer, dst.money.owner),
  B = diag(c(1, 0, 0)),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, 100, NA,
    NA, NA, 100
  ), 3, 3, TRUE),
  names.commodity = c("prod", "lab", "money"),
  names.agent = c("firm", "laborer", "money.owner"),
  numeraire = c(money = interest.rate)
)

ge2$p
ge2$z
ge2$D
ge2$S
ge2$DV
ge2$SV

#### another model (Li, 2019, example 7.2)
interest.rate <- 0.25
dst <- node_new("demand",
                type = "FIN", rate = c(1, interest.rate),
                "cc1", "money"
)
node_set(dst, "cc1",
         type = "CD", alpha = 1, beta = c(0.5, 0.5),
         "prod", "lab"
)

ge <- sdm2(
  A = list(dst, dst, dst),
  B = diag(c(1, 0, 0)),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, 100, NA,
    NA, NA, 100
  ), 3, 3, TRUE),
  names.commodity = c("prod", "lab", "money"),
  names.agent = c("firm", "laborer", "money.lender"),
  numeraire = c(money = interest.rate)
)

ge$p
ge$z
ge$D
ge$S
ge$DV
ge$SV

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