GE (version 0.4.8)

gemDCES_5_3: A Model with a Displaced CES Utility Function

Description

A model with a displaced CES utility function (Zhang, 2008, page 134; Li, 2019, example 3.12, page 130).

Usage

gemDCES_5_3(...)

Arguments

...

arguments to be passed to the function sdm2.

References

LI Wu (2019, ISBN: 9787521804225) General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press. (In Chinese)

Zhang Jinshui (2008, ISBN: 9787040224818) Mathematical Economics. Beijing: Higher Education Press. (In Chinese)

Examples

# \donttest{
ge <- sdm2(
  A = function(state) {
    a.firm1 <- CD_A(alpha = 1, Beta = c(0, 0, 0.5, 0.5, 0), state$p)
    a.firm2 <- CD_A(alpha = 2, Beta = c(0, 0, 0.5, 0, 0.5), state$p)
    a.consumer <- DCES_demand(
      es = 1,
      beta = c(1 / 3, 1 / 3, 1 / 3, 0, 0),
      xi = c(0, 0, 0.4, 0, 0),
      w = state$w[3] / 10^4,
      p = state$p
    )
    cbind(a.firm1, a.firm2, a.consumer)
  },
  B = matrix(c(
    1, 0, 0,
    0, 1, 0,
    0, 0, 0,
    0, 0, 0,
    0, 0, 0
  ), 5, 3, TRUE),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, NA, NA,
    NA, NA, 10000,
    NA, NA, 1,
    NA, NA, 1
  ), 5, 3, TRUE),
  names.commodity = c("prod1", "prod2", "lab", "land1", "land2"),
  names.agent = c("firm1", "firm2", "consumer"),
  numeraire = "lab"
)

ge$p
ge$z
# }