gemCoffeeProblem_3_3 {GE}

Coffee Problem: Some Examples of Equilibrium and Disequilibrium Pure Exchange Economies

Description

Some examples of equilibrium and disequilibrium pure exchange economies.

Usage

gemCoffeeProblem_3_3(...)

Arguments

...

arguments to be passed to the function sdm2.

References

Bapat, R. B., Raghavan, T. E. S. (1997, ISBN: 9780521571678) Nonnegative Matrices and Applications. Cambridge University Press.

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

Examples

#### the equilibrium coffee problem (Bapat, Raghavan, 1997, example 7.1; Li, 2019, example 8.1)
ge <- sdm2(
  A = matrix(c(
    0.05, 0.05, 0.1,
    0.1, 0, 0.1,
    0, 0.15, 0.05
  ), 3, 3, TRUE),
  B = matrix(0, 3, 3),
  S0Exg = diag(3),
  names.commodity = c("coffee powder", "milk", "sugar"),
  names.agent = c("consumer1", "consumer2", "consumer3"),
  numeraire = "sugar"
)

ge$p

#### the disequilibrium coffee problem with exogenous prices (Li, 2019, example 8.3).
## Computing the price-control stationary state.
pcss <- sdm2(
  A = matrix(c(
    0.05, 0.05, 0.1,
    0.1, 0, 0.1,
    0, 0.15, 0.05
  ), 3, 3, TRUE),
  B = matrix(0, 3, 3),
  S0Exg = diag(3),
  names.commodity = c("coffee powder", "milk", "sugar"),
  names.agent = c("consumer1", "consumer2", "consumer3"),
  pExg = c(1, 1, 1),
  maxIteration = 1,
  numberOfPeriods = 50,
  ts = TRUE
)

pcss$z
addmargins(pcss$D, 2)
addmargins(pcss$S, 2)

matplot(pcss$ts.z, type = "o", pch = 20)
matplot(pcss$ts.q, type = "o", pch = 20)