ufun_Atta_L: Calculates Utility function with labor supply and housing

Description Usage Arguments Details Value Author(s) Examples

Description

Calculates CRRA utility from u(Resources, wage, hsize, params )

Usage

1
ufun_Atta_L(Resources, wage, hsize, params)

Arguments

Resources

a numeric matrix

wage

either a scalar or a vector of length nrow(Resources) of wage

hsize

either a scalar or a vector of length nrow(Resources) of current house size

params

list of scalar parameters:

  1. theta: elasticity of substitution c,h

  2. alpha: exponent of consumption in cobb-douglas of period utility

  3. gamma: coefficient of relative risk aversion

  4. phival: fraction of house-utility derived from flat

  5. mu: ownership premium

  6. cutoff: minimal consumption level c*. quadratic approximation for c<c*

Details

computes CRRA utility of u(c,l,h,params).

u(c,l,h) = (c^alpha * l^1-alpha)^1-gamma / (1-gamma) * exp( theta * phi(h) ) + mu * phi(h), phi(h) = 0 if h=0, phi(h) = phival if h=1, phi(h) = 1 if h=2

Computes a quadratic approximation to u() for values of consumption such that c < c*, where c* > 0. Resoures can be a scalar, a vector or a matrix. Utility is computed on all elements. Some care needs to be taken when supplying a matrix of consumption values: the corresponding vector of house sizes needs to be either a scalar (same house size at all cons values) or of length nrow(Resources)

Value

List with three components:

utility

Numeric matrix of CRRA utility values. quadratic approximation for c<c*

consumption

Numeric matrix of consumption values.

labour

Numeric matrix of labour supplied. (fraction of time spent working.)

Author(s)

<[email protected]>

Examples

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	examples

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floswald/ArmaUtils documentation built on May 16, 2019, 1:23 p.m.