gemstEndogenousLaborSupply_2_2: A General Equilibrium Model with Endogenous Labor Supply

In GE: General Equilibrium Modeling

A General Equilibrium Model with Endogenous Labor Supply

Description

This is an example of the market-clearing path with endogenous labor supply. Assume that as the level of utility increases, laborer will purchase or receive more education and training, resulting in an increase in human capital, which can be regarded as an increase in labor supply. That is to say, the utility level as an endogenous variable will affect the supply of labor. Therefore, labor supply becomes an endogenous variable.

Usage

gemstEndogenousLaborSupply_2_2(...)

Arguments

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

Examples

f <- function(z0 = c(20, 1)) {
  ge <- sdm2(
    A = function(state) {
      a.firm <- CD_A(alpha = 5, Beta = c(0.5, 0.5), p = state$p)
      a.consumer <- c(1, 0)
      cbind(a.firm, a.consumer)
    },
    B = matrix(c(
      1, 0,
      0, 0
    ), 2, 2, TRUE),
    S0Exg = matrix(c(
      NA, NA,
      NA, 1
    ), 2, 2, TRUE),
    names.commodity = c("prod", "lab"),
    names.agent = c("firm", "consumer"),
    numeraire = "lab",
    z0 = z0,
    ts = TRUE,
    policy = list(
      function(state) {
        state$S[2, 2] <- structural_function(state$last.z[2], c(6.5, 7), 1, 2)
        state
      },
      policyMarketClearingPrice
    ),
    numberOfPeriods = 20,
    maxIteration = 1
  )
  matplot(ge$ts.z, type = "o", pch = 20)
  print(ge$z)
  print(ge$S)
}

f()

f(c(10,1))

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