makePolicyTechnologyChange: Make a Policy of Technology Change

In GE: General Equilibrium Modeling

Make a Policy of Technology Change

Description

This function returns a policy function that changes the attributes alpha and a of the demand structure trees of agents specified. An attribute alpha is usually a parameter of a CES or CD function. An attribute a is usually a parameter of a Leontief function. For demand structure trees that do not contain these two attributes, this function has no effect.

Usage

makePolicyTechnologyChange(
  adjumentment.ratio = 1.1,
  agent = 1,
  time.win = c(20, 20)
)

Arguments

adjumentment.ratio	a scalar. The attributes alpha will be multiplied by adjumentment.ratio. The attributes a will be divided by adjumentment.ratio.
agent	a vector specifying the indices or names of agents.
time.win	the time window vector, i.e. a 2-vector specifying the start time and end time of policy implementation.

Value

A policy function, which is often used as an argument of the function sdm2.

See Also

sdm2

Examples

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

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

B <- matrix(c(
  1, 0,
  0, 0
), 2, 2, TRUE)
S0Exg <- matrix(c(
  NA, NA,
  NA, 100
), 2, 2, TRUE)

ge <- sdm2(
  A = list(dst.firm, dst.consumer), B = B, S0Exg = S0Exg,
  names.commodity = c("prod", "lab"),
  names.agent = c("firm", "consumer"),
  priceAdjustmentVelocity = 0,
  policy = list(
    makePolicyTechnologyChange(agent = "firm"),
    makePolicyStickyPrice(stickiness = 0, time.win = c(1, 20)),
    makePolicyStickyPrice(stickiness = 0.9, time.win = c(20, Inf))
  ),
  ts = TRUE,
  maxIteration = 1,
  numberOfPeriods = 40
)

par(mfrow = c(1, 2))
matplot(ge$ts.z, type = "o", pch = 20)
matplot(ge$ts.p, type = "o", pch = 20)

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