gemIntertemporalStochastic_Bank_ThreePeriods {GE}

An Intertemporal Stochastic Model with a Consumer and Some Banks

Description

An intertemporal stochastic model with a consumer and some banks. In the model the consumer will live for three periods. There is one natural state in the first period, and two natural states in the second and third period.

Usage

gemIntertemporalStochastic_Bank_ThreePeriods(...)

Arguments

...

arguments to be passed to the function sdm2.

Examples

dst.bank1a <- node_new(
  "payoff2.1&2.2",
  type = "Leontief", a = 1,
  "payoff1"
)

dst.bank1b <- node_new(
  "payoff3.1&3.2",
  type = "Leontief", a = 1,
  "payoff1"
)

dst.bank2.1 <- node_new(
  "payoff3.1",
  type = "Leontief", a = 1,
  "payoff2.1"
)

dst.bank2.2 <- node_new(
  "payoff3.2",
  type = "Leontief", a = 1,
  "payoff2.2"
)

dst.consumer <- node_new(
  "util",
  type = "CD", alpha = 1, beta = c(1/3, 1/6, 1/6, 1/6, 1/6),
  "payoff1", "payoff2.1", "payoff2.2", "payoff3.1", "payoff3.2"
)

ge <- sdm2(
  A = list(dst.bank1a, dst.bank1b,dst.bank2.1,dst.bank2.2,dst.consumer),
  B = matrix(c(
    0,   0,0, 0,0,
    1.1, 0,0, 0,0,
    1.1, 0,0, 0, 0,
    0,   1.5, 1.1, 0,0,
    0,   1.5, 0, 1.1,0
  ), 5, 5, TRUE),
  S0Exg = matrix(c(
    NA, NA, NA, NA, 1,
    NA, NA, NA, NA, 1,
    NA, NA, NA, NA, 0,
    NA, NA, NA, NA, 0,
    NA, NA, NA, NA, 0
  ), 5, 5, TRUE),
  names.commodity = c("payoff1", "payoff2.1", "payoff2.2", "payoff3.1", "payoff3.2"),
  names.agent = c("bank1a","bank1b","bank2.1","bank2.2", "consumer"),
  numeraire = "payoff1"
)

ge$p
round(ge$D, 4)
round(ge$S, 4)

#### the general equilibrium in the first natural state in period 2
dst.bank2.1 <- node_new(
  "payoff3.1",
  type = "Leontief", a = 1,
  "payoff2.1"
)

dst.consumer <- node_new(
  "util",
  type = "CD", alpha = 1, beta = c(0.5, 0.5),
  "payoff2.1", "payoff3.1"
)

ge2.1 <- sdm2(
  A = list(dst.bank2.1,
           dst.consumer),
  B = matrix(c(
    0,   0,
    1.1, 0
  ), 2, 2, TRUE),
  S0Exg = matrix(c(
    NA, 1.3084,
    NA, 0.4599
  ), 2, 2, TRUE),
  names.commodity = c("payoff2.1", "payoff3.1"),
  names.agent = c("bank2.1", "consumer"),
  numeraire = "payoff2.1"
)

ge2.1$p
round(ge2.1$D, 4)
round(ge2.1$S, 4)

## the general equilibrium in an unanticipated natural state in period 2
ge2.3 <- sdm2(
  A = list(dst.bank2.1,
           dst.consumer),
  B = matrix(c(
    0,   0,
    1.1, 0
  ), 2, 2, TRUE),
  S0Exg = matrix(c(
    NA, 0.4,
    NA, 0.4599
  ), 2, 2, TRUE),
  names.commodity = c("payoff2.1", "payoff3.1"),
  names.agent = c("bank2.1", "consumer"),
  numeraire = "payoff2.1"
)

ge2.3$p
round(ge2.3$D, 4)
round(ge2.3$S, 4)