GE (version 0.4.8)

gemCanonicalDynamicMacroeconomic_Sequential_3_2: A Canonical Dynamic Macroeconomic General Equilibrium Model in Sequential Form (see Torres, 2016)

Description

A canonical dynamic macroeconomic general equilibrium model in sequential form (see Torres, 2016, Table 2.1 and 2.2).

Usage

gemCanonicalDynamicMacroeconomic_Sequential_3_2(
  alpha.firm = 1,
  es.prod.lab.firm = 1,
  beta.prod.firm = 0.35,
  depreciation.rate = 0.06,
  eis = 1,
  Gamma.beta = 0.97,
  es.prod.lab.consumer = 1,
  beta.prod.consumer = 0.4,
  gr = 0,
  wage.payment = "post",
  ...
)

Value

A general equilibrium (see sdm2).

Arguments

alpha.firm

a positive scalar, indicating the efficiency parameter of the firm.

es.prod.lab.firm

the elasticity of substitution between product and labor in the production function of firm 1.

beta.prod.firm

the share parameter of the product in the production function.

depreciation.rate

the physical depreciation rate of capital stock.

eis

the elasticity of intertemporal substitution of the consumer.

Gamma.beta

the subjective discount factor of the consumer.

es.prod.lab.consumer

the elasticity of substitution between product and labor in the CES-type period utility function of the consumer.

beta.prod.consumer

the share parameter of the product in the period utility function.

gr

the growth rate of the labor supply.

wage.payment

a character string specifying the wage payment method, must be one of "pre" or "post". See the note below.

...

arguments to be passed to the function sdm2.

See Also

gemCanonicalDynamicMacroeconomic_Timeline_2_2,
gemCanonicalDynamicMacroeconomic_TimeCircle_2_2,
gemCanonicalDynamicMacroeconomic_Sequential_WagePostpayment_4_3.

Examples

# \donttest{
#### Take the wage postpayment assumption.
ge <- gemCanonicalDynamicMacroeconomic_Sequential_3_2()
ge$p
ge$z
addmargins(ge$D, 2)
addmargins(ge$S, 2)

#### Take the wage prepayment assumption.
ge <- gemCanonicalDynamicMacroeconomic_Sequential_3_2(wage.payment  = "pre")
ge$p
ge$z
ge$D
ge$S

#### Take the wage prepayment assumption.
ge <- gemCanonicalDynamicMacroeconomic_Sequential_3_2(
  es.prod.lab.firm = 0.8,
  eis = 0.8, es.prod.lab.consumer = 0.8, gr = 0.03,
  wage.payment  = "pre"
)
ge$p
ge$z
ge$D
ge$S

#### an example of steady-state equilibrium at
# http://gecon.r-forge.r-project.org/models/rbc.pdf
ge <- gemCanonicalDynamicMacroeconomic_Sequential_3_2(
  beta.prod.firm = 0.36,
  depreciation.rate = 0.025,
  Gamma.beta = 0.99,
  eis = 0.5,
  beta.prod.consumer = 0.3,
)

ge$p / ge$p[1]
addmargins(ge$D, 2)
addmargins(ge$S, 2)
# }