gemCanonicalDynamicMacroeconomic_Sequential_WagePostpayment_4_3 {GE}

A Canonical Dynamic Macroeconomic General Equilibrium Model in Sequential Form under the Wage Postpayment Assumption (see Torres, 2016)

Description

A canonical dynamic macroeconomic general equilibrium model in sequential form under the wage postpayment assumption (see Torres, 2016, Table 2.1 and 2.2). In this model, there are two firms and one consumer. Under the wage postpayment assumption, the consumer actually consumes a kind of labor (that is, leisure) and the products produced by this labor at the same time. Firm 1 is a regular production firm. Firm 2 can store labor from one period to the next period for consumption by the consumer.

Usage

gemCanonicalDynamicMacroeconomic_Sequential_WagePostpayment_4_3(
  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,
  ...
)

Arguments

alpha.firm

a positive scalar, indicating the efficiency parameter of firm 1.

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 of firm 1.

depreciation.rate

the physical depreciation rate of capital stock of firm 1.

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.

...

arguments to be passed to the function sdm2.

Value

A general equilibrium (see sdm2).

See Also

gemCanonicalDynamicMacroeconomic_Timeline_2_2,
gemCanonicalDynamicMacroeconomic_TimeCircle_2_2,
gemCanonicalDynamicMacroeconomic_Sequential_3_2.

Examples

gemCanonicalDynamicMacroeconomic_Sequential_WagePostpayment_4_3()

####
eis <- 0.8
Gamma.beta <- 0.97
gr <- 0.03
ge <- gemCanonicalDynamicMacroeconomic_Sequential_WagePostpayment_4_3(
  es.prod.lab.firm = 0.8,
  eis = eis, Gamma.beta = Gamma.beta, es.prod.lab.consumer = 0.8,
  gr = gr
)

ge$p
ge$p[1] * (sserr(eis = eis, Gamma.beta = Gamma.beta, gr = gr, prepaid = TRUE) + 1)
ge$z
addmargins(ge$D, 2)
addmargins(ge$S, 2)
ge$S[1, 1] * (1 + gr)