gemTax_5_5: A General Equilibrium Model with Tax

In GE: General Equilibrium Modeling

A General Equilibrium Model with Tax

Description

A general equilibrium model with tax. The model contains 5 types of commodities (i.e. prod1, prod2, labor, capital and tax payment receipts) and 5 agents (i.e. firm1, firm2, laborer, capital.owner and government).

Usage

gemTax_5_5(...)

Arguments

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

Examples

tax.rate.cap1 <- 0.25
tax.rate.lab1 <- 0.25

tax.rate.cap2 <- 0.25
tax.rate.lab2 <- 0.25

es.prod <- 0.5
es.cap.lab <- 0.5

beta.firm1 <- c(0.2, 0.8)
beta.firm2 <- c(0.8, 0.2)

beta.laborer <- c(0.5, 0.5)
beta.capital.owner <- c(0.5, 0.5)
beta.government <- c(0.8, 0.2)

dst.firm1 <- node_new("prod",
  type = "SCES",
  alpha = 1, beta = beta.firm1, es = es.cap.lab,
  "cc1", "cc2"
)
node_set(dst.firm1, "cc1",
  type = "FIN",
  rate = c(1, tax.rate = tax.rate.lab1),
  "lab", "tax"
)
node_set(dst.firm1, "cc2",
  type = "FIN",
  rate = c(1, tax.rate = tax.rate.cap1),
  "cap", "tax"
)

node_plot(dst.firm1, TRUE)

dst.firm2 <- node_new("prod",
  type = "SCES",
  alpha = 1, beta = beta.firm2, es = es.cap.lab,
  "cc1", "cc2"
)
node_set(dst.firm2, "cc1",
  type = "FIN",
  rate = c(1, tax.rate = tax.rate.lab2),
  "lab", "tax"
)
node_set(dst.firm2, "cc2",
  type = "FIN",
  rate = c(1, tax.rate = tax.rate.cap2),
  "cap", "tax"
)

dst.laborer <- node_new("util",
  type = "SCES",
  alpha = 1, beta = beta.laborer, es = es.prod,
  "prod1", "prod2"
)

dst.capital.owner <- node_new("util",
  type = "SCES",
  alpha = 1, beta = beta.capital.owner, es = es.prod,
  "prod1", "prod2"
)

dst.government <- node_new("util",
  type = "SCES",
  alpha = 1, beta = beta.government, es = es.prod,
  "prod1", "prod2"
)

ge <- sdm2(
  A = list(dst.firm1, dst.firm2, dst.laborer, dst.capital.owner, dst.government),
  B = diag(c(1, 1, 0, 0, 0)),
  S0Exg = {
    S0Exg <- matrix(NA, 5, 5)
    S0Exg[3, 3] <- 100
    S0Exg[4, 4] <- 100
    S0Exg[5, 5] <- 100
    S0Exg
  },
  names.commodity = c("prod1", "prod2", "lab", "cap", "tax"),
  names.agent = c("firm1", "firm2", "laborer", "capital.owner", "government"),
  numeraire = "lab"
)

ge$p
ge$z
ge$D
ge$S
addmargins(ge$DV)
addmargins(ge$SV)

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