util: Util

In sgmodel: Solves a Generic Stochastic Growth Model with a Representative Agent

Description

The function util computes values for different types of utility functions and different parameters. See sgmodel_vignette for detailed functional forms.

Usage

util(x, A, prefparam, type = c("log", "CRRA", "CARA", "Cobb-Douglas", "CES"),
  ngoods, ...)

Arguments

x	A numeric vector of length ngoods with values to compute utility for.
A	A numerical value that will premultiply the utility function. Default value set to 1.
prefparam	A numerical value, the preference parameter applied to the utility function depending on type.
type	A character for the Type of utility function. Can be "log", "CRRA", "CARA", "Cobb-Douglas", "CES". Default type set to "log".
ngoods	Numerical value for the number of goods to consider. Default value set to 1.
...	Additional arguments.

Value

A numerical value, the utility function evaluated at the arguments.

References

Merton R. C (1971), Optimum consumption and portfolio rules in a continuous-time model. Journal of Economic Theory, 3(4), 373–413. URL http://www.sciencedirect.com/science/article/pii/002205317190038X.

Examples

x <- c(exp(1), exp(1))
A <- 2
type <- "log"
ngoods <- 2
util(x = x, A = A, type = type, ngoods = ngoods)

sgmodel documentation built on Feb. 27, 2020, 5:06 p.m.