sserr {GE}

Compute the Return Rate in the Steady State Equilibrium

Description

Compute the (postpaid) return rate in the steady state equilibrium.

Usage

sserr(eis, Gamma.beta, gr = 0, type = "CES", prepaid = FALSE)

Arguments

eis

a positive scalar indicating the elasticity of intertemporal substitution in the intertemporal utility function.

Gamma.beta

a positive scalar indicating the subjective discount factor, which is typically no greater than 1.

gr

a non-negative scalar indicating the growth rate in the steady state equilibrium.

type

a character indicating the type of the intertemporal utility function, which may be CES (i.e. CRRA) or SCES.

prepaid

a logical value. If prepaid is FALSE, the return rate is returned. Otherwise the prepaid steady-state equilibrium return rate (i.e. the current yield rate) is returned.

Examples

sserr(eis = 1, Gamma.beta = 0.97, gr = 0)
sserr(eis = 1, Gamma.beta = 1.25, gr = 0)
sserr(eis = 1, Gamma.beta = 0.97, gr = 0, type = "SCES")

sserr(eis = 0.5, Gamma.beta = 0.97, gr = 0)
sserr(eis = 0.5, Gamma.beta = 0.97, gr = 0, type = "SCES")