The geqfarm from jhconning

Change code to use S^(1-gamma)

In the early days of the model we used the formulation:

S G(T,L) = s [ T^a L^(1-a)] ^g

but in the analytics it's more convenient to use

F(T,L,S) = S^(1-g) [ T^a L^(1-a)] ^g

This is preferred since then F is homogenous of degree 1 which makes a lot of math easy, and might as well have code match the math.

In principle straightforward since it's just a scaling (s = S^(1-g)) but we need to change things like factor demands., so need to test new code.

excess demands !=0 in Lucas = True scenarios

In all the early versions of the model an individual could be both a worker and a farm manager. This allowed for the possibility that an individual both runs a small farm and works for others (common around the world).

As of 1e3007d we can now instead run the model in a variant similar to the original Lucas(78) paper where households have to choose between being workers or managers. Management is a full-time activity, so higher s-skill farmers who find Profits(s) >w will become full time managers. This works

E.s = np.array([0.5,0.75,1,1.25,1.5])
E.Lucas = False
rwc, (Tc,Lc) = E.smallhold_eq([E.TBAR,E.LBAR],E.s)
rwc
array([ 0.2614,  0.2614])

Now the Lucas version of the model:

E.Lucas = True
rwc, (Tc,Lc) = E.smallhold_eq([E.TBAR,E.LBAR],E.s)
rwc 
array([ 0.1803,  0.4509])
Tc
array([  0.    ,   0.    ,   3.4346,  10.4815,  26.0813])

(Xrc,Xr,wc,wr) = scene_print(E, numS=10, detail=True)

Assumed Parameters
==================
N = 5, GAMMA = 0.8, ALPHA = 0.5, LAMBDA = 0.2, TBAR = 100, LBAR = 100, H = 0.0, 
s (tail)= [ 0.5   0.75  1.    1.25  1.5 ], 
Lucas = True, analytic = False, 

Effcient:[ Trc, Lrc]      [rc, wc]      w/r    F( )    [r*Tr]  [w*Lr] 
==============================================================================
        [ 65.21, 26.08]  [0.18,0.45]   2.50  | 29.40   11.76    11.76 

Theta  [ Tr, Lr ]      [rM,wM]        w/r  | F()   [T_hire]  [T_sale] [L_hire]
==============================================================================
 0.00  [ 45.91, 43.37] [ 0.21, 0.29]  1.35 | 31.31     9.80     0.00    12.53  
 0.10  [ 50.51, 49.05] [ 0.23, 0.28]  1.24 | 34.17    11.38     2.25    13.67  
 0.20  [ 55.98, 56.80] [ 0.24, 0.27]  1.10 | 37.76    13.53     4.83    15.10  
 0.30  [ 61.58, 66.28] [ 0.26, 0.25]  0.96 | 41.73    16.15     7.87    16.69  
 0.40  [ 68.83, 82.07] [  0.3, 0.23]  0.78 | 47.52    20.46    11.89    19.01  
 0.50  [ 76.65,106.90] [ 0.35, 0.21]  0.58 | 55.14    27.10    17.68    22.06  
 0.60  [ 85.34,156.62] [ 0.47, 0.17]  0.37 | 67.06    39.90    28.05    26.82  
 0.70  [ 93.41,283.50] [ 0.76, 0.12]  0.16 | 88.16    70.56    52.87    35.26  
 0.80  [ 98.21,698.68] [  1.7, 0.07]  0.04 | 129.02   162.10   132.05    51.61  
 0.90  [ 99.81,2657.39] [  5.4, 0.03]  0.01 | 221.59   542.85   489.48    88.64  
 0.97  [100.19,4007.69] [  7.9, 0.03]  0.00 | 261.57   787.13   762.04   104.63  
==============================================================================

As theta>0.50 we see landlords using more than available labor supply, which obviously cannot be..

jhconning / geqfarm Goto Github PK

geqfarm's People

Contributors

Stargazers

Watchers

Forkers

geqfarm's Issues

Change code to use S^(1-gamma)

excess demands !=0 in Lucas = True scenarios

Recommend Projects

React

Vue.js

Typescript

TensorFlow

Django

Laravel

D3

Recommend Topics

javascript

web

server

Machine learning

Visualization

Game

Recommend Org

Facebook

Microsoft

Google

Alibaba

D3

Tencent