gemOLG_PureExchange_Bank {GE}

Overlapping Generations Pure Exchange Models with Bank

Description

Some examples of overlapping generations pure exchange models with bank. Under a pay-as-you-go system, banks may only redistribute payoffs among consumers in each period. This is, in each period a bank can get a part of payoff of age1 and pay it to age2 immediately. From the consumer's point of view, the bank converts the current period's payoff into the next period's payoff. Each consumer only transacts with the bank, and she can assume that there are no other consumers.

Usage

gemOLG_PureExchange_Bank(...)

Arguments

...

arguments to be passed to the function sdm2.

See Also

gemOLG_PureExchange

Examples

#### an example with a two-period-lived consumer
dst.bank <- node_new(
  "payoff2",
  type = "Leontief", a = 1,
  "payoff1"
)

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

ge <- sdm2(
  A = list(dst.bank, dst.consumer),
  B = matrix(c(
    0, 0,
    1, 0
  ), 2, 2, TRUE),
  S0Exg = matrix(c(
    NA, 100,
    NA, NA
  ), 2, 2, TRUE),
  names.commodity = c("payoff1", "payoff2"),
  names.agent = c("bank", "consumer"),
  numeraire = "payoff1"
)

ge$p
ge$D
ge$S

#### an example with a three-period-lived consumer.
dst.bank1 <- node_new(
  "payoff2",
  type = "Leontief", a = 1,
  "payoff1"
)

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

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

ge <- sdm2(
  A = list(dst.bank1, dst.bank2, dst.consumer),
  B = matrix(c(
    0, 0, 0,
    1, 0, 0,
    0, 1, 0
  ), 3, 3, TRUE),
  S0Exg = matrix(c(
    NA, NA, 50,
    NA, NA, 50,
    NA, NA, NA
  ), 3, 3, TRUE),
  names.commodity = c("payoff1", "payoff2", "payoff3"),
  names.agent = c("bank1", "bank2", "consumer"),
  numeraire = "payoff1"
)

ge$p
ge$S
ge$D

## Assume that banks can earn interest through foreign investment.
dst.bank1$a <- 0.8
dst.bank2$a <- 0.8
ge <- sdm2(
  A = list(dst.bank1, dst.bank2, dst.consumer),
  B = matrix(c(
    0, 0, 0,
    1, 0, 0,
    0, 1, 0
  ), 3, 3, TRUE),
  S0Exg = matrix(c(
    NA, NA, 50,
    NA, NA, 50,
    NA, NA, NA
  ), 3, 3, TRUE),
  names.commodity = c("payoff1", "payoff2", "payoff3"),
  names.agent = c("bank1", "bank2", "consumer"),
  numeraire = "payoff1"
)

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