def usePointsForInterpolation(self, cNrm, mNrm, interpolator):
'''
Make a basic solution object with a consumption function and marginal
value function (unconditional on the preference shock).
Parameters
----------
cNrm : np.array
Consumption points for interpolation.
mNrm : np.array
Corresponding market resource points for interpolation.
interpolator : function
A function that constructs and returns a consumption function.
Returns
-------
solution_now : ConsumerSolution
The solution to this period's consumption-saving problem, with a
consumption function, marginal value function, and minimum m.
'''
# Make the preference-shock specific consumption functions
PrefShkCount = self.PrefShkVals.size
cFunc_list = []
for j in range(PrefShkCount):
MPCmin_j = self.MPCminNow * self.PrefShkVals[j]**(1.0 / self.CRRA)
cFunc_this_shock = LowerEnvelope(
LinearInterp(mNrm[j, :],
cNrm[j, :],
intercept_limit=self.hNrmNow * MPCmin_j,
slope_limit=MPCmin_j), self.cFuncNowCnst)
cFunc_list.append(cFunc_this_shock)
# Combine the list of consumption functions into a single interpolation
cFuncNow = LinearInterpOnInterp1D(cFunc_list, self.PrefShkVals)
# Make the ex ante marginal value function (before the preference shock)
m_grid = self.aXtraGrid + self.mNrmMinNow
vP_vec = np.zeros_like(m_grid)
for j in range(
PrefShkCount): # numeric integration over the preference shock
vP_vec += self.uP(cFunc_list[j](
m_grid)) * self.PrefShkPrbs[j] * self.PrefShkVals[j]
vPnvrs_vec = self.uPinv(vP_vec)
vPfuncNow = MargValueFunc(LinearInterp(m_grid, vPnvrs_vec), self.CRRA)
# Store the results in a solution object and return it
solution_now = ConsumerSolution(cFunc=cFuncNow,
vPfunc=vPfuncNow,
mNrmMin=self.mNrmMinNow)
return solution_now
def c_future_wealth(fut_period = 1, coh = 1, exo = True):
c_list = []
rebate_fut_vals = np.linspace(0, 1, num=11)
rebate_curr_vals = rebate_fut_vals[1:]
for rebate_fut in rebate_fut_vals:
settings.rebate_size = rebate_fut
settings.init()
if exo:
IndShockExample = Model.IndShockConsumerType(**baseline_params)
else :
IndShockExample = Model.IndShockConsumerType(**init_natural_borrowing_constraint)
IndShockExample.solve()
IndShockExample.unpack_cFunc()
IndShockExample.timeFwd()
c_list = np.append(c_list,IndShockExample.cFunc[t_eval-fut_period](coh))
for rebate_cur in rebate_curr_vals:
c_list = np.append(c_list,IndShockExample.cFunc[t_eval-fut_period](coh+rebate_cur))
c_func = LinearInterp(np.linspace(0, 2, num=21),np.array(c_list))
return(c_func)
def updateSolutionTerminal(self):
'''
Update the terminal period solution.
Parameters
----------
none
Returns
-------
none
'''
#self.solution_terminal.vFunc = ValueFunc(self.cFunc_terminal_,self.CRRA)
terminal_instance = LinearInterp(np.array([0.0, 100.0]),
np.array([0.01, 0.0]),
lower_extrap=True)
self.solution_terminal.vPfunc = BilinearInterpOnInterp1D(
[[terminal_instance, terminal_instance],
[terminal_instance, terminal_instance]], np.array([0.0, 2.0]),
np.array([0.0, 2.0]))
def solveConsAggShock(solution_next, IncomeDstn, LivPrb, DiscFac, CRRA,
PermGroFac, aXtraGrid, kGrid, kNextFunc, Rfunc, wFunc):
'''
Solve one period of a consumption-saving problem with idiosyncratic and
aggregate shocks (transitory and permanent). This is a basic solver that
can't handle borrowing (assumes liquidity constraint) or cubic splines, nor
can it calculate a value function.
Parameters
----------
solution_next : ConsumerSolution
The solution to the succeeding one period problem.
IncomeDstn : [np.array]
A list containing five arrays of floats, representing a discrete
approximation to the income process between the period being solved
and the one immediately following (in solution_next). Order: event
probabilities, idisyncratic permanent shocks, idiosyncratic transitory
shocks, aggregate permanent shocks, aggregate transitory shocks.
LivPrb : float
Survival probability; likelihood of being alive at the beginning of
the succeeding period.
DiscFac : float
Intertemporal discount factor for future utility.
CRRA : float
Coefficient of relative risk aversion.
PermGroFac : float
Expected permanent income growth factor at the end of this period.
aXtraGrid : np.array
Array of "extra" end-of-period asset values-- assets above the
absolute minimum acceptable level.
kGrid : np.array
A grid of capital-to-labor ratios in the economy.
kNextFunc : function
Next period's capital-to-labor ratio as a function of this period's ratio.
Rfunc : function
The net interest factor on assets as a function of capital ratio k.
wFunc : function
The wage rate for labor as a function of capital-to-labor ratio k.
Returns
-------
solution_now : ConsumerSolution
The solution to the single period consumption-saving problem. Includes
a consumption function cFunc (linear interpolation over linear interpola-
tions) and marginal value function vPfunc.
'''
# Unpack next period's solution
vPfuncNext = solution_next.vPfunc
# Unpack the income shocks
ShkPrbsNext = IncomeDstn[0]
PermShkValsNext = IncomeDstn[1]
TranShkValsNext = IncomeDstn[2]
PermShkAggValsNext = IncomeDstn[3]
TranShkAggValsNext = IncomeDstn[4]
ShkCount = ShkPrbsNext.size
# Make the grid of end-of-period asset values, and a tiled version
aNrmNow = np.insert(aXtraGrid, 0, 0.0)
aNrmNow_tiled = np.tile(aNrmNow, (ShkCount, 1))
aCount = aNrmNow.size
# Make tiled versions of the income shocks
ShkPrbsNext_tiled = (np.tile(ShkPrbsNext, (aCount, 1))).transpose()
PermShkValsNext_tiled = (np.tile(PermShkValsNext, (aCount, 1))).transpose()
TranShkValsNext_tiled = (np.tile(TranShkValsNext, (aCount, 1))).transpose()
PermShkAggValsNext_tiled = (np.tile(PermShkAggValsNext,
(aCount, 1))).transpose()
TranShkAggValsNext_tiled = (np.tile(TranShkAggValsNext,
(aCount, 1))).transpose()
# Loop through the values in kGrid and calculate a linear consumption function for each
cFuncByK_list = []
for j in range(kGrid.size):
kNow = kGrid[j]
kNext = kNextFunc(kNow)
# Calculate returns to capital and labor in the next period
kNextEff_array = kNext / TranShkAggValsNext_tiled
Reff_array = Rfunc(kNextEff_array) / LivPrb # Effective interest rate
wEff_array = wFunc(
kNextEff_array
) * TranShkAggValsNext_tiled # Effective wage rate (accounts for labor supply)
# Calculate market resources next period (and a constant array of capital-to-labor ratio)
PermShkTotal_array = PermGroFac * PermShkValsNext_tiled * PermShkAggValsNext_tiled # total / combined permanent shock
mNrmNext_array = Reff_array * aNrmNow_tiled / PermShkTotal_array + TranShkValsNext_tiled * wEff_array
kNext_array = kNext * np.ones_like(mNrmNext_array)
# Find marginal value next period at every income shock realization and every asset gridpoint
vPnext_array = Reff_array * PermShkTotal_array**(-CRRA) * vPfuncNext(
mNrmNext_array, kNext_array)
# Calculate expectated marginal value at the end of the period at every asset gridpoint
EndOfPrdvP = DiscFac * LivPrb * PermGroFac**(-CRRA) * np.sum(
vPnext_array * ShkPrbsNext_tiled, axis=0)
# Calculate optimal consumption from each asset gridpoint, and construct a linear interpolation
cNrmNow = EndOfPrdvP**(-1.0 / CRRA)
mNrmNow = aNrmNow + cNrmNow
c_for_interpolation = np.insert(
cNrmNow, 0, 0.0) # Add liquidity constrained portion
m_for_interpolation = np.insert(mNrmNow, 0, 0.0)
cFuncNow_j = LinearInterp(m_for_interpolation, c_for_interpolation)
# Add the k-specific consumption function to the list
cFuncByK_list.append(cFuncNow_j)
# Construct the overall consumption function by combining the k-specific functions
cFuncNow = LinearInterpOnInterp1D(cFuncByK_list, kGrid)
# Construct the marginal value function using the envelope condition
vPfuncNow = MargValueFunc2D(cFuncNow, CRRA)
# Pack up and return the solution
solution_now = ConsumerSolution(cFunc=cFuncNow, vPfunc=vPfuncNow)
return solution_now
#construct results w default specification for how to set up house prices (neg wealth effect)
uw_house_params = deepcopy(baseline_params)
uw_house_params['rebate_amt'], e, uw_house_params['BoroCnstArt'], uw_house_params['HsgPay'] = \
hsg_wealth(initial_debt = hamp_params['baseline_debt'], **hamp_params)
pra_params = deepcopy(baseline_params)
pra_params['rebate_amt'], e, pra_params['BoroCnstArt'], pra_params['HsgPay'] = \
hsg_wealth(initial_debt = hamp_params['baseline_debt'] - hamp_params['pra_forgive'], **hamp_params)
pra_params['HsgPay'] = pra_pmt(age=45, **hamp_params)
#slide 3 -- housing equity
labels = ["Payment Reduction", "Payment & Principal Reduction"]
def neg(x):
return -1 * x
boro_cnst_pre_pra = LinearInterp(
np.arange(26, 91), list(map(neg, uw_house_params['BoroCnstArt'])))
boro_cnst_post_pra = LinearInterp(
np.arange(26, 91), list(map(neg, pra_params['BoroCnstArt'])))
mpl_funcs([boro_cnst_pre_pra, boro_cnst_post_pra],
45.001,
64,
N=round(64 - 45.001),
labels=labels,
title="",
ser_colors=[
"#9ecae1",
"#3182bd",
],
loc=(0, 0.7),
ylab="Borrowing Limit (Years of Income)",
def solveFashion(solution_next,DiscFac,conformUtilityFunc,punk_utility,jock_utility,switchcost_J2P,switchcost_P2J,pGrid,pEvolution,pref_shock_mag):
'''
Solves a single period of the fashion victim model.
Parameters
----------
solution_next: FashionSolution
A representation of the solution to the subsequent period's problem.
DiscFac: float
The intertemporal discount factor.
conformUtilityFunc: function
Utility as a function of the proportion of the population who wears the
same style as the agent.
punk_utility: float
Direct utility from wearing the punk style this period.
jock_utility: float
Direct utility from wearing the jock style this period.
switchcost_J2P: float
Utility cost of switching from jock to punk this period.
switchcost_P2J: float
Utility cost of switching from punk to jock this period.
pGrid: np.array
1D array of "proportion of punks" states spanning [0,1], representing
the fraction of agents *currently* wearing punk style.
pEvolution: np.array
2D array representing the distribution of next period's "proportion of
punks". The pEvolution[i,:] contains equiprobable values of p for next
period if p = pGrid[i] today.
pref_shock_mag: float
Standard deviation of T1EV preference shocks over style.
Returns
-------
solution_now: FashionSolution
A representation of the solution to this period's problem.
'''
# Unpack next period's solution
VfuncPunkNext = solution_next.VfuncPunk
VfuncJockNext = solution_next.VfuncJock
# Calculate end-of-period expected value for each style at points on the pGrid
EndOfPrdVpunk = DiscFac*np.mean(VfuncPunkNext(pEvolution),axis=1)
EndOfPrdVjock = DiscFac*np.mean(VfuncJockNext(pEvolution),axis=1)
# Get current period utility flow from each style (without switching cost)
Upunk = punk_utility + conformUtilityFunc(pGrid)
Ujock = jock_utility + conformUtilityFunc(1.0 - pGrid)
# Calculate choice-conditional value for each combination of current and next styles (at each)
V_J2J = Ujock + EndOfPrdVjock
V_J2P = Upunk - switchcost_J2P + EndOfPrdVpunk
V_P2J = Ujock - switchcost_P2J + EndOfPrdVjock
V_P2P = Upunk + EndOfPrdVpunk
# Calculate the beginning-of-period expected value of each p-state when punk
Vboth_P = np.vstack((V_P2J,V_P2P))
Vbest_P = np.max(Vboth_P,axis=0)
Vnorm_P = Vboth_P - np.tile(np.reshape(Vbest_P,(1,pGrid.size)),(2,1))
ExpVnorm_P = np.exp(Vnorm_P/pref_shock_mag)
SumExpVnorm_P = np.sum(ExpVnorm_P,axis=0)
V_P = np.log(SumExpVnorm_P)*pref_shock_mag + Vbest_P
switch_P = ExpVnorm_P[0,:]/SumExpVnorm_P
# Calculate the beginning-of-period expected value of each p-state when jock
Vboth_J = np.vstack((V_J2J,V_J2P))
Vbest_J = np.max(Vboth_J,axis=0)
Vnorm_J = Vboth_J - np.tile(np.reshape(Vbest_J,(1,pGrid.size)),(2,1))
ExpVnorm_J = np.exp(Vnorm_J/pref_shock_mag)
SumExpVnorm_J = np.sum(ExpVnorm_J,axis=0)
V_J = np.log(SumExpVnorm_J)*pref_shock_mag + Vbest_J
switch_J = ExpVnorm_J[1,:]/SumExpVnorm_J
# Make value and policy functions for each style
VfuncPunkNow = LinearInterp(pGrid,V_P)
VfuncJockNow = LinearInterp(pGrid,V_J)
switchFuncPunkNow = LinearInterp(pGrid,switch_P)
switchFuncJockNow = LinearInterp(pGrid,switch_J)
# Make and return this period's solution
solution_now = FashionSolution(VfuncJock=VfuncJockNow,
VfuncPunk=VfuncPunkNow,
switchFuncJock=switchFuncJockNow,
switchFuncPunk=switchFuncPunkNow)
return solution_now
class FashionVictimType(AgentType):
'''
A class for representing types of agents in the fashion victim model. Agents
make a binary decision over which style to wear (jock or punk), subject to
switching costs. They receive utility directly from their chosen style and
from the proportion of the population that wears the same style.
'''
_solution_terminal = FashionSolution(VfuncJock=LinearInterp(np.array([0.0, 1.0]),np.array([0.0,0.0])),
VfuncPunk=LinearInterp(np.array([0.0, 1.0]),np.array([0.0,0.0])),
switchFuncJock=NullFunc(),
switchFuncPunk=NullFunc())
def __init__(self,**kwds):
'''
Instantiate a new FashionVictim with given data.
Parameters
----------
**kwds : keyword arguments
Any number of keyword arguments key=value; each value will be assigned
to the attribute key in the new instance.
Returns
-------
new instance of FashionVictimType
'''
# Initialize a basic AgentType
AgentType.__init__(self,solution_terminal=FashionVictimType._solution_terminal,cycles=0,time_flow=True,pseudo_terminal=True,**kwds)
# Add class-specific features
self.time_inv = ['DiscFac','conformUtilityFunc','punk_utility','jock_utility','switchcost_J2P','switchcost_P2J','pGrid','pEvolution','pref_shock_mag']
self.time_vary = []
self.solveOnePeriod = solveFashion
self.update()
def updateEvolution(self):
'''
Updates the "population punk proportion" evolution array. Fasion victims
believe that the proportion of punks in the subsequent period is a linear
function of the proportion of punks this period, subject to a uniform
shock. Given attributes of self pNextIntercept, pNextSlope, pNextCount,
pNextWidth, and pGrid, this method generates a new array for the attri-
bute pEvolution, representing a discrete approximation of next period
states for each current period state in pGrid.
Parameters
----------
none
Returns
-------
none
'''
self.pEvolution = np.zeros((self.pCount,self.pNextCount))
for j in range(self.pCount):
pNow = self.pGrid[j]
pNextMean = self.pNextIntercept + self.pNextSlope*pNow
dist = approxUniform(N=self.pNextCount,bot=pNextMean-self.pNextWidth,top=pNextMean+self.pNextWidth)[1]
self.pEvolution[j,:] = dist
def update(self):
'''
Updates the non-primitive objects needed for solution, using primitive
attributes. This includes defining a "utility from conformity" function
conformUtilityFunc, a grid of population punk proportions, and an array
of future punk proportions (for each value in the grid). Results are
stored as attributes of self.
Parameters
----------
none
Returns
-------
none
'''
self.conformUtilityFunc = lambda x : stats.beta.pdf(x,self.uParamA,self.uParamB)
self.pGrid = np.linspace(0.0001,0.9999,self.pCount)
self.updateEvolution()
def reset(self):
'''
Resets this agent type to prepare it for a new simulation run. This
includes resetting the random number generator and initializing the style
of each agent of this type.
'''
self.resetRNG()
sNow = np.zeros(self.pop_size)
Shk = self.RNG.rand(self.pop_size)
sNow[Shk < self.p_init] = 1
self.sNow = sNow
def preSolve(self):
'''
Updates the punk proportion evolution array by calling self.updateEvolution().
Parameters
----------
none
Returns
-------
none
'''
# This step is necessary in the general equilibrium framework, where a
# new evolution rule is calculated after each simulation run, but only
# the sufficient statistics describing it are sent back to agents.
self.updateEvolution()
def postSolve(self):
'''
Unpack the behavioral and value functions for more parsimonious access.
Parameters
----------
none
Returns
-------
none
'''
self.switchFuncPunk = self.solution[0].switchFuncPunk
self.switchFuncJock = self.solution[0].switchFuncJock
self.VfuncPunk = self.solution[0].VfuncPunk
self.VfuncJock = self.solution[0].VfuncJock
def simOnePrd(self):
'''
Simulate one period of the fashion victom model for this type. Each
agent receives an idiosyncratic preference shock and chooses whether to
change styles (using the optimal decision rule).
Parameters
----------
none
Returns
-------
none
'''
pNow = self.pNow
sPrev = self.sNow
J2Pprob = self.switchFuncJock(pNow)
P2Jprob = self.switchFuncPunk(pNow)
Shks = self.RNG.rand(self.pop_size)
J2P = np.logical_and(sPrev == 0,Shks < J2Pprob)
P2J = np.logical_and(sPrev == 1,Shks < P2Jprob)
sNow = copy(sPrev)
sNow[J2P] = 1
sNow[P2J] = 0
self.sNow = sNow
def marketAction(self):
'''
The "market action" for a FashionType in the general equilibrium setting.
Simulates a single period using self.simOnePrd().
Parameters
----------
none
Returns
-------
none
'''
self.simOnePrd()
def solveConsAggShock(solution_next, IncomeDstn, LivPrb, DiscFac, CRRA,
PermGroFac, aXtraGrid, BoroCnstArt, Mgrid, AFunc, Rfunc,
wFunc, DeprFac):
'''
Solve one period of a consumption-saving problem with idiosyncratic and
aggregate shocks (transitory and permanent). This is a basic solver that
can't handle borrowing (assumes liquidity constraint) or cubic splines, nor
can it calculate a value function.
Parameters
----------
solution_next : ConsumerSolution
The solution to the succeeding one period problem.
IncomeDstn : [np.array]
A list containing five arrays of floats, representing a discrete
approximation to the income process between the period being solved
and the one immediately following (in solution_next). Order: event
probabilities, idisyncratic permanent shocks, idiosyncratic transitory
shocks, aggregate permanent shocks, aggregate transitory shocks.
LivPrb : float
Survival probability; likelihood of being alive at the beginning of
the succeeding period.
DiscFac : float
Intertemporal discount factor for future utility.
CRRA : float
Coefficient of relative risk aversion.
PermGroGac : float
Expected permanent income growth factor at the end of this period.
aXtraGrid : np.array
Array of "extra" end-of-period asset values-- assets above the
absolute minimum acceptable level.
BoroCnstArt : float
Artificial borrowing constraint; minimum allowable end-of-period asset-to-
permanent-income ratio. Unlike other models, this *can't* be None.
Mgrid : np.array
A grid of aggregate market resourses to permanent income in the economy.
AFunc : function
Aggregate savings as a function of aggregate market resources.
Rfunc : function
The net interest factor on assets as a function of capital ratio k.
wFunc : function
The wage rate for labor as a function of capital-to-labor ratio k.
DeprFac : float
Capital Depreciation Rate
Returns
-------
solution_now : ConsumerSolution
The solution to the single period consumption-saving problem. Includes
a consumption function cFunc (linear interpolation over linear interpola-
tions) and marginal value function vPfunc.
'''
# Unpack next period's solution
vPfuncNext = solution_next.vPfunc
mNrmMinNext = solution_next.mNrmMin
# Unpack the income shocks
ShkPrbsNext = IncomeDstn[0]
PermShkValsNext = IncomeDstn[1]
TranShkValsNext = IncomeDstn[2]
PermShkAggValsNext = IncomeDstn[3]
TranShkAggValsNext = IncomeDstn[4]
ShkCount = ShkPrbsNext.size
# Make the grid of end-of-period asset values, and a tiled version
aNrmNow = np.insert(aXtraGrid, 0, 0.0)
aNrmNow_tiled = np.tile(aNrmNow, (ShkCount, 1))
aCount = aNrmNow.size
# Make tiled versions of the income shocks
ShkPrbsNext_tiled = (np.tile(ShkPrbsNext, (aCount, 1))).transpose()
PermShkValsNext_tiled = (np.tile(PermShkValsNext, (aCount, 1))).transpose()
TranShkValsNext_tiled = (np.tile(TranShkValsNext, (aCount, 1))).transpose()
PermShkAggValsNext_tiled = (np.tile(PermShkAggValsNext,
(aCount, 1))).transpose()
TranShkAggValsNext_tiled = (np.tile(TranShkAggValsNext,
(aCount, 1))).transpose()
# Loop through the values in Mgrid and calculate a linear consumption function for each
cFuncBaseByM_list = []
BoroCnstNat_array = np.zeros(Mgrid.size)
mNrmMinNext_array = mNrmMinNext(AFunc(Mgrid) * (1 - DeprFac))
for j in range(Mgrid.size):
MNow = Mgrid[j]
AaggNow = AFunc(MNow)
# Calculate returns to capital and labor in the next period
kNext_array = AaggNow * (1 - DeprFac) / (
PermGroFac * PermShkAggValsNext_tiled * TranShkAggValsNext_tiled)
kNextEff_array = kNext_array / TranShkAggValsNext_tiled
R_array = Rfunc(kNextEff_array) # Interest factor on aggregate assets
Reff_array = R_array / LivPrb # Effective interest factor on individual assets *for survivors*
wEff_array = wFunc(
kNextEff_array
) * TranShkAggValsNext_tiled # Effective wage rate (accounts for labor supply)
PermShkTotal_array = PermGroFac * PermShkValsNext_tiled * PermShkAggValsNext_tiled # total / combined permanent shock
Mnext_array = kNext_array * (R_array + DeprFac) + wEff_array
# Find the natural borrowing constraint for this capital-to-labor ratio
aNrmMin_candidates = PermGroFac * PermShkValsNext * PermShkAggValsNext / Reff_array[:, 0] * (
mNrmMinNext_array[j] - wEff_array[:, 0] * TranShkValsNext)
aNrmMin = np.max(aNrmMin_candidates)
BoroCnstNat = aNrmMin
BoroCnstNat_array[j] = BoroCnstNat
# Calculate market resources next period (and a constant array of capital-to-labor ratio)
mNrmNext_array = Reff_array * (
aNrmNow_tiled +
aNrmMin) / PermShkTotal_array + TranShkValsNext_tiled * wEff_array
# Find marginal value next period at every income shock realization and every aggregate market resource gridpoint
vPnext_array = Reff_array * PermShkTotal_array**(-CRRA) * vPfuncNext(
mNrmNext_array, Mnext_array)
# Calculate expectated marginal value at the end of the period at every asset gridpoint
EndOfPrdvP = DiscFac * LivPrb * PermGroFac**(-CRRA) * np.sum(
vPnext_array * ShkPrbsNext_tiled, axis=0)
# Calculate optimal consumption from each asset gridpoint, and construct a linear interpolation
cNrmNow = EndOfPrdvP**(-1.0 / CRRA)
mNrmNow = (aNrmNow + aNrmMin) + cNrmNow
c_for_interpolation = np.insert(
cNrmNow, 0, 0.0) # Add liquidity constrained portion
m_for_interpolation = np.insert(mNrmNow - BoroCnstNat, 0, 0.0)
cFuncBase_j = LinearInterp(m_for_interpolation, c_for_interpolation)
# Add the M-specific consumption function to the list
cFuncBaseByM_list.append(cFuncBase_j)
# Construct the overall unconstrained consumption function by combining the M-specific functions
BoroCnstNat = LinearInterp(np.insert(Mgrid, 0, 0.0),
np.insert(BoroCnstNat_array, 0, 0.0))
cFuncBase = LinearInterpOnInterp1D(cFuncBaseByM_list, Mgrid)
cFuncUnc = VariableLowerBoundFunc2D(cFuncBase, BoroCnstNat)
# Make the constrained consumption function and combine it with the unconstrained component
cFuncCnst = BilinearInterp(np.array([[0.0, 0.0], [1.0, 1.0]]),
np.array([BoroCnstArt, BoroCnstArt + 1.0]),
np.array([0.0, 1.0]))
cFuncNow = LowerEnvelope2D(cFuncUnc, cFuncCnst)
# Make the minimum m function as the greater of the natural and artificial constraints
mNrmMinNow = UpperEnvelope(BoroCnstNat, ConstantFunction(BoroCnstArt))
# Construct the marginal value function using the envelope condition
vPfuncNow = MargValueFunc2D(cFuncNow, CRRA)
# Pack up and return the solution
solution_now = ConsumerSolution(cFunc=cFuncNow,
vPfunc=vPfuncNow,
mNrmMin=mNrmMinNow)
return solution_now
def consumptionSavingSolverLinear(solution_tp1, income_distrib, p_zero_income,
survival_prob, beta, rho, R, Gamma,
constrained, a_grid):
'''
Solves a single period of a standard consumption-saving problem, representing
the consumption function as piecewise linear interpolation.
Parameters:
-----------
solution_tp1: ConsumerSolution
The solution to the following period, likely generated by another call to SolveAPeriodConsumptionSaving.
income_distrib: [[float]]
A list containing three lists of floats, representing a discrete approximation to the income process between
the period being solved and the one immediately following (in Solution_tp1). Order: psi, xi, probs
p_zero_income: float
The probability of receiving zero income in the succeeding period.
survival_prob: float
Probability of surviving to succeeding period.
beta: float
Discount factor between this period and the succeeding period.
rho: float
The coefficient of relative risk aversion
R: float
Interest factor on assets between this period and the succeeding period: w_tp1 = a_t*R
Gamma: float
Expected growth factor for permanent income between this period and the succeeding period.
constrained: bool
Whether this individual may hold net negative assets at the end of the period.
a_grid: [float]
A list of end-of-period asset values (post-decision states) at which to solve for optimal consumption.
Returns:
-----------
Solution_t: ConsumerSolution
The solution to this period's problem, obtained using the method of endogenous gridpoints.
'''
# Define utility functions
u = lambda c: utility(c, gam=rho
) # currently unused, potentially useful for vFunc
uP = lambda c: utilityP(c, gam=rho)
uPinv = lambda u: utilityP_inv(u, gam=rho)
# Set and update values for this period
effective_beta = beta * survival_prob
psi_tp1 = income_distrib[0]
xi_tp1 = income_distrib[1]
prob_tp1 = income_distrib[2]
cFunc_tp1 = solution_tp1.cFunc
psi_underbar_tp1 = np.min(psi_tp1)
xi_underbar_tp1 = np.min(xi_tp1)
# Calculate the minimum allowable value of money resources in this period
if constrained:
m_underbar_t = 0.0
else:
m_underbar_t = (solution_tp1.m_underbar -
xi_underbar_tp1) * (Gamma * psi_underbar_tp1) / R
# Define the borrowing constraint (limiting consumption function)
constraint_t = lambda m: m - m_underbar_t
# Find the unconstrained consumption function one step back
c_temp = [0.0
] # Limiting consumption is zero as m approaches m lower bound
m_temp = [m_underbar_t]
a = np.asarray(a_grid) + m_underbar_t
a_N = a.size
shock_N = xi_tp1.size
a_temp = np.tile(a, (shock_N, 1))
psi_temp = (np.tile(psi_tp1, (a_N, 1))).transpose()
xi_temp = (np.tile(xi_tp1, (a_N, 1))).transpose()
prob_temp = (np.tile(prob_tp1, (a_N, 1))).transpose()
m_tp1 = R / (Gamma * psi_temp) * a_temp + xi_temp
c_tp1 = cFunc_tp1(m_tp1)
C_tp1 = psi_temp * c_tp1
gothicvP = effective_beta * R * Gamma**(-rho) * np.sum(
uP(C_tp1) * prob_temp, axis=0)
c = uPinv(gothicvP)
m = c + a
c_temp += c.tolist()
m_temp += m.tolist()
cFunc_t_unconstrained = LinearInterp(m_temp, c_temp)
# Combine the constrained and unconstrained functions into the true consumption function
cFunc_t = ConstrainedComposite(cFunc_t_unconstrained, constraint_t)
# Store the results in a solution object and return it
solution_t = ConsumerSolution(cFunc=cFunc_t, m_underbar=m_underbar_t)
return solution_t
def solveConsRepAgent(solution_next, DiscFac, CRRA, IncomeDstn, CapShare,
DeprFac, PermGroFac, aXtraGrid):
'''
Solve one period of the simple representative agent consumption-saving model.
Parameters
----------
solution_next : ConsumerSolution
Solution to the next period's problem (i.e. previous iteration).
DiscFac : float
Intertemporal discount factor for future utility.
CRRA : float
Coefficient of relative risk aversion.
IncomeDstn : [np.array]
A list containing three arrays of floats, representing a discrete
approximation to the income process between the period being solved
and the one immediately following (in solution_next). Order: event
probabilities, permanent shocks, transitory shocks.
CapShare : float
Capital's share of income in Cobb-Douglas production function.
DeprFac : float
Depreciation rate of capital.
PermGroFac : float
Expected permanent income growth factor at the end of this period.
aXtraGrid : np.array
Array of "extra" end-of-period asset values-- assets above the
absolute minimum acceptable level. In this model, the minimum acceptable
level is always zero.
Returns
-------
solution_now : ConsumerSolution
Solution to this period's problem (new iteration).
'''
# Unpack next period's solution and the income distribution
vPfuncNext = solution_next.vPfunc
ShkPrbsNext = IncomeDstn[0]
PermShkValsNext = IncomeDstn[1]
TranShKValsNext = IncomeDstn[2]
# Make tiled versions of end-of-period assets, shocks, and probabilities
aNrmNow = aXtraGrid
aNrmCount = aNrmNow.size
ShkCount = ShkPrbsNext.size
aNrm_tiled = np.tile(np.reshape(aNrmNow, (aNrmCount, 1)), (1, ShkCount))
# Tile arrays of the income shocks and put them into useful shapes
PermShkVals_tiled = np.tile(np.reshape(PermShkValsNext, (1, ShkCount)),
(aNrmCount, 1))
TranShkVals_tiled = np.tile(np.reshape(TranShKValsNext, (1, ShkCount)),
(aNrmCount, 1))
ShkPrbs_tiled = np.tile(np.reshape(ShkPrbsNext, (1, ShkCount)),
(aNrmCount, 1))
# Calculate next period's capital-to-permanent-labor ratio under each combination
# of end-of-period assets and shock realization
kNrmNext = aNrm_tiled / (PermGroFac * PermShkVals_tiled)
# Calculate next period's market resources
KtoLnext = kNrmNext / TranShkVals_tiled
RfreeNext = 1. - DeprFac + CapShare * KtoLnext**(CapShare - 1.)
wRteNext = (1. - CapShare) * KtoLnext**CapShare
mNrmNext = RfreeNext * kNrmNext + wRteNext * TranShkVals_tiled
# Calculate end-of-period marginal value of assets for the RA
vPnext = vPfuncNext(mNrmNext)
EndOfPrdvP = DiscFac * np.sum(
RfreeNext *
(PermGroFac * PermShkVals_tiled)**(-CRRA) * vPnext * ShkPrbs_tiled,
axis=1)
# Invert the first order condition to get consumption, then find endogenous gridpoints
cNrmNow = EndOfPrdvP**(-1. / CRRA)
mNrmNow = aNrmNow + cNrmNow
# Construct the consumption function and the marginal value function
cFuncNow = LinearInterp(np.insert(mNrmNow, 0, 0.0),
np.insert(cNrmNow, 0, 0.0))
vPfuncNow = MargValueFunc(cFuncNow, CRRA)
# Construct and return the solution for this period
solution_now = ConsumerSolution(cFunc=cFuncNow, vPfunc=vPfuncNow)
return solution_now
def solveConsRepAgentMarkov(solution_next, MrkvArray, DiscFac, CRRA,
IncomeDstn, CapShare, DeprFac, PermGroFac,
aXtraGrid):
'''
Solve one period of the simple representative agent consumption-saving model.
This version supports a discrete Markov process.
Parameters
----------
solution_next : ConsumerSolution
Solution to the next period's problem (i.e. previous iteration).
MrkvArray : np.array
Markov transition array between this period and next period.
DiscFac : float
Intertemporal discount factor for future utility.
CRRA : float
Coefficient of relative risk aversion.
IncomeDstn : [[np.array]]
A list of lists containing three arrays of floats, representing a discrete
approximation to the income process between the period being solved
and the one immediately following (in solution_next). Order: event
probabilities, permanent shocks, transitory shocks.
CapShare : float
Capital's share of income in Cobb-Douglas production function.
DeprFac : float
Depreciation rate of capital.
PermGroFac : [float]
Expected permanent income growth factor for each state we could be in
next period.
aXtraGrid : np.array
Array of "extra" end-of-period asset values-- assets above the
absolute minimum acceptable level. In this model, the minimum acceptable
level is always zero.
Returns
-------
solution_now : ConsumerSolution
Solution to this period's problem (new iteration).
'''
# Define basic objects
StateCount = MrkvArray.shape[0]
aNrmNow = aXtraGrid
aNrmCount = aNrmNow.size
EndOfPrdvP_cond = np.zeros((StateCount, aNrmCount)) + np.nan
# Loop over *next period* states, calculating conditional EndOfPrdvP
for j in range(StateCount):
# Define next-period-state conditional objects
vPfuncNext = solution_next.vPfunc[j]
ShkPrbsNext = IncomeDstn[j][0]
PermShkValsNext = IncomeDstn[j][1]
TranShKValsNext = IncomeDstn[j][2]
# Make tiled versions of end-of-period assets, shocks, and probabilities
ShkCount = ShkPrbsNext.size
aNrm_tiled = np.tile(np.reshape(aNrmNow, (aNrmCount, 1)),
(1, ShkCount))
# Tile arrays of the income shocks and put them into useful shapes
PermShkVals_tiled = np.tile(np.reshape(PermShkValsNext, (1, ShkCount)),
(aNrmCount, 1))
TranShkVals_tiled = np.tile(np.reshape(TranShKValsNext, (1, ShkCount)),
(aNrmCount, 1))
ShkPrbs_tiled = np.tile(np.reshape(ShkPrbsNext, (1, ShkCount)),
(aNrmCount, 1))
# Calculate next period's capital-to-permanent-labor ratio under each combination
# of end-of-period assets and shock realization
kNrmNext = aNrm_tiled / (PermGroFac[j] * PermShkVals_tiled)
# Calculate next period's market resources
KtoLnext = kNrmNext / TranShkVals_tiled
RfreeNext = 1. - DeprFac + CapShare * KtoLnext**(CapShare - 1.)
wRteNext = (1. - CapShare) * KtoLnext**CapShare
mNrmNext = RfreeNext * kNrmNext + wRteNext * TranShkVals_tiled
# Calculate end-of-period marginal value of assets for the RA
vPnext = vPfuncNext(mNrmNext)
EndOfPrdvP_cond[j, :] = DiscFac * np.sum(
RfreeNext * (PermGroFac[j] * PermShkVals_tiled)**(-CRRA) * vPnext *
ShkPrbs_tiled,
axis=1)
# Apply the Markov transition matrix to get unconditional end-of-period marginal value
EndOfPrdvP = np.dot(MrkvArray, EndOfPrdvP_cond)
# Construct the consumption function and marginal value function for each discrete state
cFuncNow_list = []
vPfuncNow_list = []
for i in range(StateCount):
# Invert the first order condition to get consumption, then find endogenous gridpoints
cNrmNow = EndOfPrdvP[i, :]**(-1. / CRRA)
mNrmNow = aNrmNow + cNrmNow
# Construct the consumption function and the marginal value function
cFuncNow_list.append(
LinearInterp(np.insert(mNrmNow, 0, 0.0),
np.insert(cNrmNow, 0, 0.0)))
vPfuncNow_list.append(MargValueFunc(cFuncNow_list[-1], CRRA))
# Construct and return the solution for this period
solution_now = ConsumerSolution(cFunc=cFuncNow_list, vPfunc=vPfuncNow_list)
return solution_now
for ltv in ltv_rows:
mtg_params = hsg_params(params_u, ltv=ltv, pra=True)
agent_nd = solve_unpack(mtg_params)
m_star, share_default = default_rate_solved(v_def_stig_tmp, agent_nd)
m_u_pra_list.append(m_star)
if ltv <= 100: share_default = 0
def_u_pra_list.append(share_default)
mtg_params = hsg_params(params_std, ltv=ltv, pra=True)
agent_nd = solve_unpack(mtg_params)
m_star, share_default = default_rate_solved(v_def_stig_std, agent_nd)
m_std_pra_list.append(m_star)
if ltv <= 100: share_default = 0
def_std_pra_list.append(share_default)
mstar_u_pra_f = LinearInterp(ltv_rows, np.array(m_u_pra_list))
def_u_pra_f = LinearInterp(ltv_rows, np.array(def_u_pra_list))
mstar_std_pra_f = LinearInterp(ltv_rows, np.array(m_std_pra_list))
def_std_pra_f = LinearInterp(ltv_rows, np.array(def_std_pra_list))
labels = ["Model: Baseline", "Model: Match Xsec Correlation"]
labels_main = ["Baseline"]
g = mpl_funcs([def_u_pra_f],
min(ltv_rows),
max(ltv_rows) + 10,
N=len(ltv_rows),
ser_colors=["#9ecae1"],
show_legend=False,
title="",
class PrefLaborConsumerType(IndShockConsumerType):
'''
A consumer type with idiosyncratic shocks to permanent and transitory income,
as well as shocks to preferences
'''
# Define some universal values for all consumer types
cFunc_terminal_ = BilinearInterpOnInterp1D(
[[
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0])),
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0]))
],
[
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0])),
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0]))
]], np.array([0.0, 1.0]), np.array([0.0,
1.0])) # c=m in terminal period
vFunc_terminal_ = BilinearInterpOnInterp1D(
[[
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0])),
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0]))
],
[
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0])),
LinearInterp(np.array([0.0, 1.0]), np.array([0.0, 1.0]))
]], np.array([0.0, 1.0]), np.array([0.0, 1.0])) # This is overwritten
solution_terminal_ = ConsumerSolution(cFunc=cFunc_terminal_,
vFunc=vFunc_terminal_)
time_inv_ = PerfForesightConsumerType.time_inv_ + [
'LaborElas', 'PrefShkVals', 'WageShkVals'
]
shock_vars_ = ['PermShkNow', 'TranShkNow', 'PrefShkNow']
def __init__(self, cycles=1, time_flow=True, **kwds):
'''
Instantiate a new ConsumerType with given data.
See ConsumerParameters.init_idiosyncratic_shocks for a dictionary of
the keywords that should be passed to the constructor.
Parameters
----------
cycles : int
Number of times the sequence of periods should be solved.
time_flow : boolean
Whether time is currently "flowing" forward for this instance.
Returns
-------
None
'''
# Initialize a basic AgentType
IndShockConsumerType.__init__(self,
cycles=cycles,
time_flow=time_flow,
**kwds)
# Add consumer-type specific objects, copying to create independent versions
self.solveOnePeriod = solvePrefLaborShock # idiosyncratic shocks solver
self.update() # Make assets grid, income process, terminal solution
def reset(self):
self.initializeSim()
self.t_age = drawDiscrete(self.AgentCount,
P=self.AgeDstn,
X=np.arange(self.AgeDstn.size),
exact_match=False,
seed=self.RNG.randint(0,
2**31 - 1)).astype(int)
self.t_cycle = copy(self.t_age)
def marketAction(self):
self.simulate(1)
def updateIncomeProcess(self):
'''
Updates this agent's income process based on his own attributes. The
function that generates the discrete income process can be swapped out
for a different process.
Parameters
----------
none
Returns:
-----------
none
'''
original_time = self.time_flow
self.timeFwd()
IncomeAndPrefDstn, PermShkDstn, TranShkDstn, PrefShkDstn = constructLognormalIncomeAndPreferenceProcess(
self)
self.IncomeAndPrefDstn = IncomeAndPrefDstn
self.PermShkDstn = PermShkDstn
self.TranShkDstn = TranShkDstn
self.PrefShkDstn = TranShkDstn
self.PrefShkVals = PrefShkDstn[0][1]
self.WageShkVals = TranShkDstn[0][1]
self.addToTimeVary('IncomeAndPrefDstn', 'PermShkDstn', 'TranShkDstn',
'PrefShkDstn')
if not original_time:
self.timeRev()
def updateSolutionTerminal(self):
'''
Update the terminal period solution.
Parameters
----------
none
Returns
-------
none
'''
#self.solution_terminal.vFunc = ValueFunc(self.cFunc_terminal_,self.CRRA)
terminal_instance = LinearInterp(np.array([0.0, 100.0]),
np.array([0.01, 0.0]),
lower_extrap=True)
self.solution_terminal.vPfunc = BilinearInterpOnInterp1D(
[[terminal_instance, terminal_instance],
[terminal_instance, terminal_instance]], np.array([0.0, 2.0]),
np.array([0.0, 2.0]))
#self.solution_terminal.vPPfunc = MargMargValueFunc(self.cFunc_terminal_,self.CRRA)
def getShocks(self):
'''
Gets permanent and transitory income shocks for this period. Samples from IncomeDstn for
each period in the cycle.
Parameters
----------
None
Returns
-------
None
'''
PermShkNow = np.zeros(self.AgentCount) # Initialize shock arrays
TranShkNow = np.zeros(self.AgentCount)
PrefShkNow = np.zeros(self.AgentCount)
newborn = self.t_age == 0
for t in range(self.T_cycle):
these = t == self.t_cycle
N = np.sum(these)
if N > 0:
IncomeDstnNow = self.IncomeAndPrefDstn[
t - 1] # set current income distribution
PermGroFacNow = self.PermGroFac[
t - 1] # and permanent growth factor
Indices = np.arange(
IncomeDstnNow[0].size) # just a list of integers
# Get random draws of income shocks from the discrete distribution
EventDraws = drawDiscrete(N,
X=Indices,
P=IncomeDstnNow[0],
exact_match=False,
seed=self.RNG.randint(0, 2**31 - 1))
PermShkNow[these] = IncomeDstnNow[1][
EventDraws] * PermGroFacNow # permanent "shock" includes expected growth
TranShkNow[these] = IncomeDstnNow[2][EventDraws]
PrefShkNow[these] = IncomeDstnNow[3][EventDraws]
# That procedure used the *last* period in the sequence for newborns, but that's not right
# Redraw shocks for newborns, using the *first* period in the sequence. Approximation.
N = np.sum(newborn)
if N > 0:
these = newborn
IncomeDstnNow = self.IncomeAndPrefDstn[
0] # set current income distribution
PermGroFacNow = self.PermGroFac[0] # and permanent growth factor
Indices = np.arange(
IncomeDstnNow[0].size) # just a list of integers
# Get random draws of income shocks from the discrete distribution
EventDraws = drawDiscrete(N,
X=Indices,
P=IncomeDstnNow[0],
exact_match=False,
seed=self.RNG.randint(0, 2**31 - 1))
PermShkNow[these] = IncomeDstnNow[1][
EventDraws] * PermGroFacNow # permanent "shock" includes expected growth
TranShkNow[these] = IncomeDstnNow[2][EventDraws]
PrefShkNow[these] = IncomeDstnNow[3][EventDraws]
# PermShkNow[newborn] = 1.0
TranShkNow[newborn] = 1.0
# Store the shocks in self
self.EmpNow = np.ones(self.AgentCount, dtype=bool)
self.EmpNow[TranShkNow == self.IncUnemp] = False
self.PermShkNow = PermShkNow
self.TranShkNow = TranShkNow
self.PrefShkNow = PrefShkNow
def getStates(self):
'''
Calculates updated values of normalized market resources and permanent income level for each
agent. Uses pLvlNow, aNrmNow, PermShkNow, TranShkNow.
Parameters
----------
None
Returns
-------
None
'''
pLvlPrev = self.pLvlNow
aNrmPrev = self.aNrmNow
RfreeNow = self.getRfree()
# Calculate new states: normalized market resources and permanent income level
self.pLvlNow = pLvlPrev * self.PermShkNow # Updated permanent income level
ReffNow = RfreeNow / self.PermShkNow # "Effective" interest factor on normalized assets
self.bNrmNow = ReffNow * aNrmPrev # Bank balances before labor income
return None
def getControls(self):
'''
Calculates consumption for each consumer of this type using the consumption functions.
Parameters
----------
None
Returns
-------
None
'''
cNrmNow = np.zeros(self.AgentCount) + np.nan
MPCnow = np.zeros(self.AgentCount) + np.nan
lNow = np.zeros(self.AgentCount) + np.nan
for t in range(self.T_cycle):
these = t == self.t_cycle
cNrmNow[these] = self.solution[t].cFunc(self.bNrmNow[these],
self.TranShkNow,
self.PrefShkNow)
MPCnow[these] = self.solution[t].cFunc.derivativeX(
self.bNrmNow[these], self.TranShkNow, self.PrefShkNow)
lNow[these] = self.solution[t].lFunc(self.bNrmNow[these],
self.TranShkNow,
self.PrefShkNow)
self.cNrmNow = cNrmNow
self.MPCnow = MPCnow
self.lNow = lNow
self.lIncomeLvl = lNow * self.TranShkNow * self.pLvlNow
self.cLvlNow = cNrmNow * self.pLvlNow
return None
def getPostStates(self):
'''
Calculates end-of-period assets for each consumer of this type.
Parameters
----------
None
Returns
-------
None
'''
self.aNrmNow = self.bNrmNow + self.lNow * self.TranShkNow - self.cNrmNow
self.aLvlNow = self.aNrmNow * self.pLvlNow # Useful in some cases to precalculate asset level
return None
def makeBasicSolution(self, EndOfPrdvP, aNrm, wageShkVals, prefShkVals):
'''
Given end of period assets and end of period marginal value, construct
the basic solution for this period.
Parameters
----------
EndOfPrdvP : np.array
Array of end-of-period marginal values.
aNrm : np.array
Array of end-of-period asset values that yield the marginal values
in EndOfPrdvP.
wageShkVals : np.array
Array of this period transitory wage shock values.
prefShkVals : np.array
Array of this period preference shock values.
Returns
-------
solution_now : ConsumerSolution
The solution to this period's consumption-saving problem, with a
consumption function, marginal value function.
'''
num_pref_shocks = len(prefShkVals)
num_wage_shocks = len(wageShkVals)
cFuncBaseByPref_list = []
vPFuncBaseByPref_list = []
lFuncBaseByPref_list = []
for i in range(num_wage_shocks):
cFuncBaseByPref_list.append([])
vPFuncBaseByPref_list.append([])
lFuncBaseByPref_list.append([])
for j in range(num_pref_shocks):
c_temp = self.uPinv(EndOfPrdvP / prefShkVals[j])
l_temp = self.LabSupply(wageShkVals[i] * EndOfPrdvP)
b_temp = c_temp + aNrm - l_temp * wageShkVals[i]
if wageShkVals[i] == 0.0:
c_temp = np.insert(c_temp, 0, 0., axis=-1)
l_temp = np.insert(l_temp, 0, 0.0, axis=-1)
b_temp = np.insert(b_temp, 0, 0.0, axis=-1)
lFuncBaseByPref_list[i].append(
LinearInterp(b_temp, l_temp, lower_extrap=True))
cFunc1 = LinearInterp(b_temp, c_temp, lower_extrap=True)
cFunc2 = LinearInterp(b_temp,
l_temp * wageShkVals[i] + b_temp,
lower_extrap=True)
cFuncBaseByPref_list[i].append(LowerEnvelope(cFunc1, cFunc2))
pseudo_inverse_vPfunc1 = LinearInterp(
b_temp,
prefShkVals[j]**(-1.0 / self.CRRA) * c_temp,
lower_extrap=True)
pseudo_inverse_vPfunc2 = LinearInterp(
b_temp,
prefShkVals[j]**(-1.0 / self.CRRA) *
(l_temp * wageShkVals[i] + b_temp),
lower_extrap=True)
pseudo_inverse_vPfunc = LowerEnvelope(pseudo_inverse_vPfunc1,
pseudo_inverse_vPfunc2)
vPFuncBaseByPref_list[i].append(
MargValueFunc(pseudo_inverse_vPfunc, self.CRRA))
cFuncNow = BilinearInterpOnInterp1D(cFuncBaseByPref_list, wageShkVals,
prefShkVals)
vPfuncNow = BilinearInterpOnInterp1D(vPFuncBaseByPref_list,
wageShkVals, prefShkVals)
lFuncNow = BilinearInterpOnInterp1D(lFuncBaseByPref_list, wageShkVals,
prefShkVals)
# Pack up and return the solution
solution_now = ConsumerSolution(cFunc=cFuncNow, vPfunc=vPfuncNow)
solution_now.lFunc = lFuncNow
return solution_now