gemOLGF_TwoFirms {GE}

Overlapping Generations Financial Sequential Models with Two Firms

Description

Some examples of overlapping generations financial sequential models with two firms.

Usage

gemOLGF_TwoFirms(...)

Arguments

...

arguments to be passed to the function sdm2.

See Also

gemOLGF_PureExchange

Examples

#### an example with two-period-lived consumers
dst.firm.corn <- node_new(
  "corn",
  type = "CD", alpha = 5,
  beta = c(1 / 2, 1 / 2),
  "iron", "lab"
)

dst.firm.iron <- node_new(
  "iron",
  type = "CD", alpha = 5,
  beta = c(1 / 2, 1 / 2),
  "iron", "lab"
)

dst.age1 <- node_new(
  "util",
  type = "FIN",
  rate = c(1, ratio.saving.consumption = 1),
  "corn", "secy" # security, the financial instrument
)

dst.age2 <- node_new(
  "util",
  type = "Leontief", a = 1,
  "corn"
)

ge <- sdm2(
  A = list(
    dst.firm.corn, dst.firm.iron, dst.age1, dst.age2
  ),
  B = matrix(c(
    1, 0, 0, 0,
    0, 1, 0, 0,
    0, 0, 0, 0,
    0, 0, 0, 0
  ), 4, 4, TRUE),
  S0Exg = matrix(c(
    NA, NA, NA, NA,
    NA, NA, NA, NA,
    NA, NA, 1, NA,
    NA, NA, NA, 1
  ), 4, 4, TRUE),
  names.commodity = c("corn", "iron", "lab", "secy"),
  names.agent = c("firm.corn", "firm.iron", "age1", "age2"),
  numeraire = "lab"
)

ge$p
ge$D
ge$DV
ge$S

## an example with three-period-lived consumers
dst.age1$rate <- c(1, ratio.saving.consumption = 1 / 2)

dst.age3 <- Clone(dst.age2)

dst.age2 <- Clone(dst.age1)
dst.age2$rate <- c(1, ratio.saving.consumption = 1)

ge <- sdm2(
  A = list(
    dst.firm.corn, dst.firm.iron, dst.age1, dst.age2, dst.age3
  ),
  B = matrix(c(
    1, 0, 0, 0, 0,
    0, 1, 0, 0, 0,
    0, 0, 0, 0, 0,
    0, 0, 0, 0, 0
  ), 4, 5, TRUE),
  S0Exg = matrix(c(
    NA, NA, NA, NA, NA,
    NA, NA, NA, NA, NA,
    NA, NA, 1, 1, NA,
    NA, NA, NA, 1, 1
  ), 4, 5, TRUE),
  names.commodity = c("corn", "iron", "lab", "secy"),
  names.agent = c("firm.corn", "firm.iron", "age1", "age2", "age3"),
  numeraire = "lab",
  policy = function(time, state) {
    # Assume that unsold security will be void.
    last.Demand <- state$last.A %*% dg(state$last.z)
    secy.holding <- prop.table(last.Demand[4, ])
    if (time > 1) {
      state$S[4, 4:5] <- secy.holding[3:4]
    }
    state
  }
)

ge$p
ge$D
ge$DV
ge$S