gemStickyPricePath_2_2: Some Examples Illustrating the Sticky-Price Path and Business...

In GE: General Equilibrium Modeling

Some Examples Illustrating the Sticky-Price Path and Business Cycles

Description

These are some examples that illustrate the sticky-price path and business cycles.

Usage

gemStickyPricePath_2_2(...)

Arguments

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

Examples

stickiness <- 0.7

dst.firm <- node_new(
  "output",
  type = "CD", alpha = 2, beta = c(0.5, 0.5),
  "prod", "lab"
)

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

ge <- sdm2(
  A = list(dst.firm, dst.consumer),
  B = matrix(c(
    1, 0,
    0, 1
  ), 2, 2, TRUE),
  S0Exg = matrix(c(
    NA, NA,
    NA, 100
  ), 2, 2, TRUE),
  names.commodity = c("prod", "lab"),
  names.agent = c("firm", "consumer"),
  numeraire = "lab",
  z0 = c(100, 100),
  p0 = c(1, 1),
  ts = TRUE,
  policy = list(
    makePolicyTechnologyChange(
      adjumentment.ratio = 2,
      agent = "firm",
      time.win = c(30, 30)
    ),
    makePolicyStickyPrice(stickiness = stickiness)
  ),
  priceAdjustmentVelocity = 0,
  numberOfPeriods = 60,
  maxIteration = 1
)

matplot(ge$ts.z, type = "b", pch = 20)

#### another example.
## When the stickiness is 0, there will be business cycles.
stickiness <- 0.5

dst.firm <- node_new(
  "output",
  type = "Leontief", a = 0.2,
  "lab"
)

dst.consumer <- node_new(
  "util",
  type = "CES", es = 0.3, alpha = 1, beta = c(0.5, 0.5),
  "prod", "lab"
)

ge <- sdm2(
  A = list(dst.firm, dst.consumer),
  B = matrix(c(
    1, 0,
    0, 0
  ), 2, 2, TRUE),
  S0Exg = matrix(c(
    NA, NA,
    NA, 100
  ), 2, 2, TRUE),
  names.commodity = c("prod", "lab"),
  names.agent = c("firm", "consumer"),
  numeraire = "lab",
  z0 = c(100, 100),
  p0 = c(1, 1),
  ts = TRUE,
  policy = makePolicyStickyPrice(stickiness	= stickiness),
  priceAdjustmentVelocity = 0,
  numberOfPeriods = 40,
  maxIteration = 1
)

matplot(ge$ts.z, type = "b", pch = 20)

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