gemExogenousPrice_EndogenousLaborSupply_3_3 {GE}

An Example of Price Regulation and Endogenous Labor Supply (Example 9.5 of Li, 2019)

Description

This is an example of price regulation and endogenous labor supply. See CGE::Example9.5.

Usage

gemExogenousPrice_EndogenousLaborSupply_3_3(...)

Arguments

...

arguments to be passed to the function sdm2.

See Also

gemExogenousPrice

Examples

## the exogenous labor price with product as numeraire.
p.labor <- 0.625

dst.firm <- node_new("output",
  type = "CD",
  alpha = 1,  beta = c(0.5, 0.5),
  "land", "lab"
)

dst.landowner <- node_new(
  "util",
  type = "Leontief", a = 1,
  "prod"
)

dst.laborer <- Clone(dst.landowner)

ge <- sdm2(
  A = list(
    dst.firm,
    dst.landowner,
    dst.laborer
  ),
  B = diag(3),
  S0Exg = matrix(c(
    NA, NA, NA,
    NA, 100, NA,
    NA, NA, 100
  ), 3, 3, TRUE),
  GRExg = 0,
  names.commodity = c("prod", "land", "lab"),
  names.agent = c("firm", "landowner", "laborer"),
  maxIteration = 1,
  numberOfPeriods = 200,
  depreciationCoef = 0,
  numeraire = "prod",
  ts = TRUE,
  policy = function(time, state, state.history) {
    if (time > 1) {
      ratio <- state$p[3] / state$p[1] / p.labor
      last.labor.supply <- state.history$S[3, 3, time - 1]
      state$S[3, 3] <- last.labor.supply * ratio
    }

    state
  }
)

matplot(ge$ts.p, type = "l")
tail(ge$ts.S[3, 3, ])
plot(ge$ts.S[3, 3, ], type = "l")