def post_solve(self):
self.solution_fast = deepcopy(self.solution)
if self.cycles == 0:
terminal = 1
else:
terminal = self.cycles
self.solution[terminal] = self.solution_terminal_cs
for i in range(terminal):
solution = self.solution[i]
# Construct the consumption function as a linear interpolation.
cFunc = LinearInterp(solution.mNrm, solution.cNrm)
"""
Defines the value and marginal value functions for this period.
Uses the fact that for a perfect foresight CRRA utility problem,
if the MPC in period t is :math:`\kappa_{t}`, and relative risk
aversion :math:`\rho`, then the inverse value vFuncNvrs has a
constant slope of :math:`\kappa_{t}^{-\rho/(1-\rho)}` and
vFuncNvrs has value of zero at the lower bound of market resources
mNrmMin. See PerfForesightConsumerType.ipynb documentation notebook
for a brief explanation and the links below for a fuller treatment.
https://www.econ2.jhu.edu/people/ccarroll/public/lecturenotes/consumption/PerfForesightCRRA/#vFuncAnalytical
https://www.econ2.jhu.edu/people/ccarroll/SolvingMicroDSOPs/#vFuncPF
"""
vFuncNvrs = LinearInterp(
np.array([solution.mNrmMin, solution.mNrmMin + 1.0]),
np.array([0.0, solution.vFuncNvrsSlope]),
)
vFunc = ValueFuncCRRA(vFuncNvrs, self.CRRA)
vPfunc = MargValueFuncCRRA(cFunc, self.CRRA)
consumer_solution = ConsumerSolution(
cFunc=cFunc,
vFunc=vFunc,
vPfunc=vPfunc,
mNrmMin=solution.mNrmMin,
hNrm=solution.hNrm,
MPCmin=solution.MPCmin,
MPCmax=solution.MPCmax,
)
Ex_IncNext = 1.0 # Perfect foresight income of 1
# Add mNrmStE to the solution and return it
consumer_solution.mNrmStE = _add_mNrmStENumba(
self.Rfree,
self.PermGroFac[i],
solution.mNrm,
solution.cNrm,
solution.mNrmMin,
Ex_IncNext,
_find_mNrmStE,
)
self.solution[i] = consumer_solution
def post_solve(self):
self.solution_fast = deepcopy(self.solution)
if self.cycles == 0:
cycles = 1
else:
cycles = self.cycles
self.solution[-1] = self.solution_terminal_cs
for i in range(cycles):
for j in range(self.T_cycle):
solution = self.solution[i * self.T_cycle + j]
# Define the borrowing constraint (limiting consumption function)
cFuncNowCnst = LinearInterp(
np.array([solution.mNrmMin, solution.mNrmMin + 1]),
np.array([0.0, 1.0]),
)
"""
Constructs a basic solution for this period, including the consumption
function and marginal value function.
"""
if self.CubicBool:
# Makes a cubic spline interpolation of the unconstrained consumption
# function for this period.
cFuncNowUnc = CubicInterp(
solution.mNrm,
solution.cNrm,
solution.MPC,
solution.cFuncLimitIntercept,
solution.cFuncLimitSlope,
)
else:
# Makes a linear interpolation to represent the (unconstrained) consumption function.
# Construct the unconstrained consumption function
cFuncNowUnc = LinearInterp(
solution.mNrm,
solution.cNrm,
solution.cFuncLimitIntercept,
solution.cFuncLimitSlope,
)
# Combine the constrained and unconstrained functions into the true consumption function
cFuncNow = LowerEnvelope(cFuncNowUnc, cFuncNowCnst)
# Make the marginal value function and the marginal marginal value function
vPfuncNow = MargValueFuncCRRA(cFuncNow, self.CRRA)
# Pack up the solution and return it
consumer_solution = ConsumerSolution(
cFunc=cFuncNow,
vPfunc=vPfuncNow,
mNrmMin=solution.mNrmMin,
hNrm=solution.hNrm,
MPCmin=solution.MPCmin,
MPCmax=solution.MPCmax,
)
if self.vFuncBool:
vNvrsFuncNow = CubicInterp(
solution.mNrmGrid,
solution.vNvrs,
solution.vNvrsP,
solution.MPCminNvrs * solution.hNrm,
solution.MPCminNvrs,
)
vFuncNow = ValueFuncCRRA(vNvrsFuncNow, self.CRRA)
consumer_solution.vFunc = vFuncNow
if self.CubicBool or self.vFuncBool:
_searchFunc = (
_find_mNrmStECubic if self.CubicBool else _find_mNrmStELinear
)
# Add mNrmStE to the solution and return it
consumer_solution.mNrmStE = _add_mNrmStEIndNumba(
self.PermGroFac[j],
self.Rfree,
solution.Ex_IncNext,
solution.mNrmMin,
solution.mNrm,
solution.cNrm,
solution.MPC,
solution.MPCmin,
solution.hNrm,
_searchFunc,
)
self.solution[i * self.T_cycle + j] = consumer_solution