wages_inversion: Function to compute equilibrium wages that make the model...

In davidzarruk/IGCities: Simulate Impact of Different Urban Policies Through a General Equilibrium Model

Function to compute equilibrium wages that make the model labor in every location in equal to the observed data. It finds the w's such that equation (3.2) holds.

Description

Function to compute equilibrium wages that make the model labor in every location in equal to the observed data. It finds the w's such that equation (3.2) holds.

Usage

wages_inversion(
  N,
  w_init,
  theta,
  tau,
  L_i,
  L_j,
  nu_init = 0.05,
  tol = 10^-10,
  maxiter = 10000
)

Arguments

N	Integer - Number of locations.
w_init	Initial vector of wages.
theta	Float - Commuting elasticity.
tau	NxN matrix - Commuting cost matrix across all locations.
L_i	Nx1 matrix - Number of residents in each location.
L_j	Nx1 matrix - Number of workers in each location.
nu_init	Float - Convergence parameter to update wages. Default nu=0.01.
tol	Float - Maximum tolerable error for estimating total labor. Default tol=10^-10.
maxiter	Integer - Maximum number of iterations for convergence. Default maxiter=10000.

Value

A list with equilibrium wages and probability of workers in each location working in every other location.

davidzarruk/IGCities documentation built on Sept. 28, 2024, 11:36 a.m.