gemTwoIndustries_4_3 {GE}

A 4-by-3 Economy with Two Industries

Description

A 4-by-3 economy with two industries.

Usage

gemTwoIndustries_4_3(...)

Arguments

...

arguments to be passed to the function sdm2.

References

Ju, Jiandong, Justin Yifu Lin, Qing Liu, Kang Shi (2020) Structural Changes and the Real Exchange Rate Dynamics. Journal of International Money and Finance, Vol. 107, pp: 102192.

Examples

dst.manu <- node_new("output",
  type = "SCES", es = 1,
  alpha = 1, beta = c(0.2, 0.8),
  "lab", "cap"
)

dst.serv <- node_new("output",
  type = "SCES", es = 1,
  alpha = 1, beta = c(0.8, 0.2),
  "lab", "cap"
)

dst.consumer <- node_new("util",
  type = "SCES", es = 1,
  alpha = 1, beta = c(0.5, 0.5),
  "manu", "serv"
)

dstl <- list(dst.manu, dst.serv, dst.consumer)

S0Exg <- matrix(c(
  NA, NA, NA,
  NA, NA, NA,
  NA, NA, 100,
  NA, NA, 100
), 4, 3, TRUE)

f <- function(dstl, S0Exg) {
  sdm2(
    A = dstl,
    B = matrix(c(
      1, 0, 0,
      0, 1, 0,
      0, 0, 0,
      0, 0, 0
    ), 4, 3, TRUE),
    S0Exg = S0Exg,
    names.commodity = c("manu", "serv", "lab", "cap"),
    names.agent = c("manu", "serv", "consumer"),
    numeraire = c("manu")
  )
}

ge <- f(dstl = dstl, S0Exg = S0Exg)

ge$D
ge$p

##
dstl2 <- lapply(dstl, Clone)
dstl2[[1]]$alpha <- 2

ge <- f(dstl = dstl2, S0Exg = S0Exg)
ge$D
ge$p

##
S0Exg2 <- S0Exg
S0Exg2[3, 3] <- 200 # labor supply
ge <- f(dstl = dstl, S0Exg = S0Exg2)
ge$D
ge$p

##
S0Exg3 <- S0Exg
S0Exg3[4, 3] <- 200 # capital supply
ge <- f(dstl = dstl, S0Exg = S0Exg3)
ge$D
ge$p

##
dstl3 <- lapply(dstl, Clone)
dstl3[[3]]$beta <- c(0.2, 0.8)
ge <- f(dstl = dstl3, S0Exg = S0Exg)
ge$D
ge$p

## exogenous wage rate
S0Exg4 <- S0Exg
S0Exg4[3, 3] <- 300 # labor supply

# Compute the price-control stationary state.
pcss <- sdm2(
  A = dstl2,
  B = matrix(c(
    1, 0, 0,
    0, 1, 0,
    0, 0, 0,
    0, 0, 0
  ), 4, 3, TRUE),
  S0Exg = S0Exg4,
  names.commodity = c("manu", "serv", "lab", "cap"),
  names.agent = c("manu", "serv", "consumer"),
  numeraire = c("manu"),
  pExg = c(1, NA, 1, NA),
  maxIteration = 1,
  ts = TRUE
)

matplot(pcss$ts.z, type = "l")
matplot(pcss$ts.q, type = "l")
tail(pcss$ts.q)
pcss$p