GE (version 0.2.5)

gemstEndogenousUtilityFunction: An Endogenous Utility Function

Description

This is an example of the market-clearing path with an endogenous utility function. The parameters of the utility function will change with the utility level.

Usage

gemstEndogenousUtilityFunction(...)

Arguments

...

arguments to be passed to the function sdm2.

Examples

# NOT RUN {
dst.firm <- node_new(
  "output",
  type = "CD", alpha = 5, beta = c(0.5, 0.5),
  "prod", "lab"
)

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

ge <- sdm2(
  A = list(dst.firm, dst.consumer),
  B = matrix(c(
    1, 0,
    0, 1
  ), 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 = c(0.01, 1),
  p0 = c(1, 1),
  ts = TRUE,
  policy = list(
    function(A, state) {
      util <- state$last.z[2]
      beta2 <- 0.95 * plogis(util, location = 2, scale = 2)
      A[[2]]$beta <- c(1 - beta2, beta2)
    },
    policyMarketClearingPrice
  ),
  numberOfPeriods = 20,
  maxIteration = 1
)

matplot(ge$ts.z, type = "b", pch = 20)
ge$z
dst.consumer$beta
# }
# NOT RUN {
# }