def test_SS_solver_extra(baseline, param_updates, filename, dask_client):
# Test SS.SS_solver function. Provide inputs to function and
# ensure that output returned matches what it has been before.
p = Specifications(baseline=baseline, num_workers=NUM_WORKERS)
p.update_specifications(param_updates)
p.output_base = CUR_PATH
b_guess = np.ones((p.S, p.J)) * 0.07
n_guess = np.ones((p.S, p.J)) * .35 * p.ltilde
if p.zeta_K[-1] == 1.0:
rguess = p.world_int_rate[-1]
else:
rguess = 0.06483431412921253
TRguess = 0.05738932081035772
factorguess = 139355.1547340256
BQguess = aggregates.get_BQ(rguess, b_guess, None, p, 'SS', False)
Yguess = 0.6376591201150815
test_dict = SS.SS_solver(b_guess, n_guess, rguess, BQguess, TRguess,
factorguess, Yguess, p, dask_client, False)
expected_dict = utils.safe_read_pickle(
os.path.join(CUR_PATH, 'test_io_data', filename))
for k, v in expected_dict.items():
print('Testing ', k)
assert (np.allclose(test_dict[k], v, atol=1e-05, equal_nan=True))
def inner_loop(outer_loop_vars, p, client):
'''
This function solves for the inner loop of the SS. That is, given
the guesses of the outer loop variables (r, w, TR, factor) this
function solves the households' problems in the SS.
Args:
outer_loop_vars (tuple): tuple of outer loop variables,
(bssmat, nssmat, r, BQ, TR, factor) or
(bssmat, nssmat, r, BQ, Y, TR, factor)
bssmat (Numpy array): initial guess at savings, size = SxJ
nssmat (Numpy array): initial guess at labor supply, size = SxJ
BQ (array_like): aggregate bequest amount(s)
Y (scalar): real GDP
TR (scalar): lump sum transfer amount
factor (scalar): scaling factor converting model units to dollars
w (scalar): real wage rate
p (OG-Core Specifications object): model parameters
client (Dask client object): client
Returns:
(tuple): results from household solution:
* euler_errors (Numpy array): errors terms from FOCs,
size = 2SxJ
* bssmat (Numpy array): savings, size = SxJ
* nssmat (Numpy array): labor supply, size = SxJ
* new_r (scalar): real interest rate on firm capital
* new_r_gov (scalar): real interest rate on government debt
* new_r_p (scalar): real interest rate on household
portfolio
* new_w (scalar): real wage rate
* new_TR (scalar): lump sum transfer amount
* new_Y (scalar): real GDP
* new_factor (scalar): scaling factor converting model
units to dollars
* new_BQ (array_like): aggregate bequest amount(s)
* average_income_model (scalar): average income in model
units
'''
# unpack variables to pass to function
if p.budget_balance:
bssmat, nssmat, r, BQ, TR, factor = outer_loop_vars
r_p = r
Y = 1.0 # placeholder
K = 1.0 # placeholder
else:
bssmat, nssmat, r, BQ, Y, TR, factor = outer_loop_vars
K = firm.get_K_from_Y(Y, r, p, 'SS')
# initialize array for euler errors
euler_errors = np.zeros((2 * p.S, p.J))
w = firm.get_w_from_r(r, p, 'SS')
r_gov = fiscal.get_r_gov(r, p)
D, D_d, D_f, new_borrowing, debt_service, new_borrowing_f =\
fiscal.get_D_ss(r_gov, Y, p)
r_p = aggr.get_r_p(r, r_gov, K, D)
bq = household.get_bq(BQ, None, p, 'SS')
tr = household.get_tr(TR, None, p, 'SS')
ubi = p.ubi_nom_array[-1, :, :] / factor
lazy_values = []
for j in range(p.J):
guesses = np.append(bssmat[:, j], nssmat[:, j])
euler_params = (r_p, w, bq[:, j], tr[:, j], ubi[:, j], factor, j, p)
lazy_values.append(
delayed(opt.fsolve)(euler_equation_solver,
guesses * .9,
args=euler_params,
xtol=MINIMIZER_TOL,
full_output=True))
if client:
futures = client.compute(lazy_values, num_workers=p.num_workers)
results = client.gather(futures)
else:
results = results = compute(*lazy_values,
scheduler=dask.multiprocessing.get,
num_workers=p.num_workers)
# for j, result in results.items():
for j, result in enumerate(results):
[solutions, infodict, ier, message] = result
euler_errors[:, j] = infodict['fvec']
bssmat[:, j] = solutions[:p.S]
nssmat[:, j] = solutions[p.S:]
L = aggr.get_L(nssmat, p, 'SS')
B = aggr.get_B(bssmat, p, 'SS', False)
K_demand_open = firm.get_K(L, p.world_int_rate[-1], p, 'SS')
K, K_d, K_f = aggr.get_K_splits(B, K_demand_open, D_d, p.zeta_K[-1])
Y = firm.get_Y(K, L, p, 'SS')
if p.zeta_K[-1] == 1.0:
new_r = p.world_int_rate[-1]
else:
new_r = firm.get_r(Y, K, p, 'SS')
new_w = firm.get_w_from_r(new_r, p, 'SS')
b_s = np.array(list(np.zeros(p.J).reshape(1, p.J)) + list(bssmat[:-1, :]))
new_r_gov = fiscal.get_r_gov(new_r, p)
new_r_p = aggr.get_r_p(new_r, new_r_gov, K, D)
average_income_model = ((new_r_p * b_s + new_w * p.e * nssmat) *
p.omega_SS.reshape(p.S, 1) *
p.lambdas.reshape(1, p.J)).sum()
if p.baseline:
new_factor = p.mean_income_data / average_income_model
else:
new_factor = factor
new_BQ = aggr.get_BQ(new_r_p, bssmat, None, p, 'SS', False)
new_bq = household.get_bq(new_BQ, None, p, 'SS')
tr = household.get_tr(TR, None, p, 'SS')
theta = tax.replacement_rate_vals(nssmat, new_w, new_factor, None, p)
etr_params_3D = np.tile(
np.reshape(p.etr_params[-1, :, :], (p.S, 1, p.etr_params.shape[2])),
(1, p.J, 1))
taxss = tax.net_taxes(new_r_p, new_w, b_s, nssmat, new_bq, factor, tr, ubi,
theta, None, None, False, 'SS', p.e, etr_params_3D,
p)
cssmat = household.get_cons(new_r_p, new_w, b_s, bssmat, nssmat, new_bq,
taxss, p.e, p.tau_c[-1, :, :], p)
total_tax_revenue, _, agg_pension_outlays, UBI_outlays, _, _, _, _, _, _ =\
aggr.revenue(new_r_p, new_w, b_s, nssmat, new_bq, cssmat, Y, L,
K, factor, ubi, theta, etr_params_3D, p, 'SS')
G = fiscal.get_G_ss(Y, total_tax_revenue, agg_pension_outlays, TR,
UBI_outlays, new_borrowing, debt_service, p)
new_TR = fiscal.get_TR(Y, TR, G, total_tax_revenue, agg_pension_outlays,
UBI_outlays, p, 'SS')
return euler_errors, bssmat, nssmat, new_r, new_r_gov, new_r_p, \
new_w, new_TR, Y, new_factor, new_BQ, average_income_model
def test_get_BQ(r, b_splus1, j, p, method, PreTP, expected):
"""
Test of aggregate bequest function.
"""
BQ = aggr.get_BQ(r, b_splus1, j, p, method, PreTP)
assert np.allclose(BQ, expected)
def run_SS(p, client=None):
'''
Solve for steady-state equilibrium of OG-Core.
Args:
p (OG-Core Specifications object): model parameters
client (Dask client object): client
Returns:
output (dictionary): dictionary with steady-state solution
results
'''
# For initial guesses of w, r, TR, and factor, we use values that
# are close to some steady state values.
if p.baseline:
if p.zeta_K[-1] == 1.0:
rguess = p.world_int_rate[-1]
else:
rguess = p.initial_guess_r_SS
if p.use_zeta:
b_guess = np.ones((p.S, p.J)) * 0.0055
n_guess = np.ones((p.S, p.J)) * .4 * p.ltilde
else:
b_guess = np.ones((p.S, p.J)) * 0.07
n_guess = np.ones((p.S, p.J)) * .35 * p.ltilde
TRguess = p.initial_guess_TR_SS
factorguess = p.initial_guess_factor_SS
BQguess = aggr.get_BQ(rguess, b_guess, None, p, 'SS', False)
ss_params_baseline = (b_guess, n_guess, None, None, p, client)
if p.use_zeta:
BQguess = 0.12231465279007188
guesses = [rguess] + list([BQguess]) + [TRguess, factorguess]
else:
guesses = [rguess] + list(BQguess) + [TRguess, factorguess]
[solutions_fsolve, infodict, ier, message] =\
opt.fsolve(SS_fsolve, guesses, args=ss_params_baseline,
xtol=p.mindist_SS, full_output=True)
if ENFORCE_SOLUTION_CHECKS and not ier == 1:
raise RuntimeError('Steady state equilibrium not found')
rss = solutions_fsolve[0]
BQss = solutions_fsolve[1:-2]
TR_ss = solutions_fsolve[-2]
factor_ss = solutions_fsolve[-1]
Yss = TR_ss / p.alpha_T[-1] # may not be right - if budget_balance
# = True, but that's ok - will be fixed in SS_solver
fsolve_flag = True
# Return SS values of variables
output = SS_solver(b_guess, n_guess, rss, BQss, TR_ss, factor_ss, Yss,
p, client, fsolve_flag)
else:
# Use the baseline solution to get starting values for the reform
baseline_ss_dir = os.path.join(p.baseline_dir, 'SS', 'SS_vars.pkl')
ss_solutions = utils.safe_read_pickle(baseline_ss_dir)
# use baseline solution as starting values if dimensions match
if ss_solutions['bssmat_splus1'].shape == (p.S, p.J):
(b_guess, n_guess, rguess, BQguess, TRguess, Yguess,
factor) =\
(ss_solutions['bssmat_splus1'], ss_solutions['nssmat'],
ss_solutions['rss'], ss_solutions['BQss'],
ss_solutions['TR_ss'], ss_solutions['Yss'],
ss_solutions['factor_ss'])
else:
if p.use_zeta:
b_guess = np.ones((p.S, p.J)) * 0.0055
n_guess = np.ones((p.S, p.J)) * .4 * p.ltilde
else:
b_guess = np.ones((p.S, p.J)) * 0.07
n_guess = np.ones((p.S, p.J)) * .4 * p.ltilde
if p.zeta_D[-1] == 1.0:
rguess = p.world_int_rate[-1]
else:
rguess = p.initial_guess_r_SS
TRguess = p.initial_guess_TR_SS
factor = p.initial_guess_factor_SS
BQguess = aggr.get_BQ(rguess, b_guess, None, p, 'SS', False)
if p.baseline_spending:
TR_ss = TRguess
ss_params_reform = (b_guess, n_guess, TR_ss, factor, p, client)
if p.use_zeta:
guesses = [rguess] + list([BQguess]) + [Yguess]
else:
guesses = [rguess] + list(BQguess) + [Yguess]
[solutions_fsolve, infodict, ier, message] =\
opt.fsolve(SS_fsolve, guesses,
args=ss_params_reform, xtol=p.mindist_SS,
full_output=True)
rss = solutions_fsolve[0]
BQss = solutions_fsolve[1:-1]
Yss = solutions_fsolve[-1]
else:
ss_params_reform = (b_guess, n_guess, None, factor, p, client)
if p.use_zeta:
guesses = [rguess] + list([BQguess]) + [TRguess]
else:
guesses = [rguess] + list(BQguess) + [TRguess]
[solutions_fsolve, infodict, ier, message] =\
opt.fsolve(SS_fsolve, guesses,
args=ss_params_reform, xtol=p.mindist_SS,
full_output=True)
rss = solutions_fsolve[0]
BQss = solutions_fsolve[1:-1]
TR_ss = solutions_fsolve[-1]
Yss = TR_ss / p.alpha_T[-1] # may not be right - if
# budget_balance = True, but that's ok - will be fixed in
# SS_solver
if ENFORCE_SOLUTION_CHECKS and not ier == 1:
raise RuntimeError('Steady state equilibrium not found')
# Return SS values of variables
fsolve_flag = True
# Return SS values of variables
output = SS_solver(b_guess, n_guess, rss, BQss, TR_ss, factor, Yss, p,
client, fsolve_flag)
if output['Gss'] < 0.:
warnings.warn('Warning: The combination of the tax policy ' +
'you specified and your target debt-to-GDP ' +
'ratio results in an infeasible amount of ' +
'government spending in order to close the ' +
'budget (i.e., G < 0)')
return output
def run_TPI(p, client=None):
'''
Solve for transition path equilibrium of OG-Core.
Args:
p (OG-Core Specifications object): model parameters
client (Dask client object): client
Returns:
output (dictionary): dictionary with transition path solution
results
'''
# unpack tuples of parameters
initial_values, ss_vars, theta, baseline_values = get_initial_SS_values(p)
(B0, b_sinit, b_splus1init, factor, initial_b, initial_n) =\
initial_values
(TRbaseline, Gbaseline, D0_baseline) = baseline_values
# Create time path of UBI household benefits and aggregate UBI outlays
ubi = p.ubi_nom_array / factor
UBI = aggr.get_L(ubi[:p.T], p, 'TPI')
print('Government spending breakpoints are tG1: ', p.tG1, '; and tG2:',
p.tG2)
# Initialize guesses at time paths
# Make array of initial guesses for labor supply and savings
guesses_b = utils.get_initial_path(initial_b, ss_vars['bssmat_splus1'], p,
'ratio')
guesses_n = utils.get_initial_path(initial_n, ss_vars['nssmat'], p,
'ratio')
b_mat = guesses_b
n_mat = guesses_n
ind = np.arange(p.S)
# Get path for aggregate savings and labor supply
L_init = np.ones((p.T + p.S, )) * ss_vars['Lss']
B_init = np.ones((p.T + p.S, )) * ss_vars['Bss']
L_init[:p.T] = aggr.get_L(n_mat[:p.T], p, 'TPI')
B_init[1:p.T] = aggr.get_B(b_mat[:p.T], p, 'TPI', False)[:p.T - 1]
B_init[0] = B0
K_init = B_init * ss_vars['Kss'] / ss_vars['Bss']
K = K_init
K_d = K_init * ss_vars['K_d_ss'] / ss_vars['Kss']
K_f = K_init * ss_vars['K_f_ss'] / ss_vars['Kss']
L = L_init
B = B_init
Y = np.zeros_like(K)
Y[:p.T] = firm.get_Y(K[:p.T], L[:p.T], p, 'TPI')
Y[p.T:] = ss_vars['Yss']
r = np.zeros_like(Y)
r[:p.T] = firm.get_r(Y[:p.T], K[:p.T], p, 'TPI')
r[p.T:] = ss_vars['rss']
# For case where economy is small open econ
r[p.zeta_K == 1] = p.world_int_rate[p.zeta_K == 1]
# Compute other interest rates
r_gov = fiscal.get_r_gov(r, p)
r_p = aggr.get_r_p(r, r_gov, K, ss_vars['Dss'])
# compute w
w = np.zeros_like(r)
w[:p.T] = firm.get_w_from_r(r[:p.T], p, 'TPI')
w[p.T:] = ss_vars['wss']
# initial guesses at fiscal vars
if p.budget_balance:
if np.abs(ss_vars['TR_ss']) < 1e-13:
TR_ss2 = 0.0 # sometimes SS is very small but not zero,
# even if taxes are zero, this get's rid of the
# approximation error, which affects the pct changes below
else:
TR_ss2 = ss_vars['TR_ss']
TR = np.ones(p.T + p.S) * TR_ss2
total_tax_revenue = TR - ss_vars['agg_pension_outlays']
G = np.zeros(p.T + p.S)
D = np.zeros(p.T + p.S)
D_d = np.zeros(p.T + p.S)
D_f = np.zeros(p.T + p.S)
else:
if p.baseline_spending:
TR = TRbaseline
G = Gbaseline
G[p.T:] = ss_vars['Gss']
else:
TR = p.alpha_T * Y
G = np.ones(p.T + p.S) * ss_vars['Gss']
D = np.ones(p.T + p.S) * ss_vars['Dss']
D_d = D * ss_vars['D_d_ss'] / ss_vars['Dss']
D_f = D * ss_vars['D_f_ss'] / ss_vars['Dss']
total_tax_revenue = np.ones(p.T + p.S) * ss_vars['total_tax_revenue']
# Initialize bequests
BQ0 = aggr.get_BQ(r_p[0], initial_b, None, p, 'SS', True)
if not p.use_zeta:
BQ = np.zeros((p.T + p.S, p.J))
for j in range(p.J):
BQ[:, j] = (list(np.linspace(BQ0[j], ss_vars['BQss'][j], p.T)) +
[ss_vars['BQss'][j]] * p.S)
BQ = np.array(BQ)
else:
BQ = (list(np.linspace(BQ0, ss_vars['BQss'], p.T)) +
[ss_vars['BQss']] * p.S)
BQ = np.array(BQ)
TPIiter = 0
TPIdist = 10
euler_errors = np.zeros((p.T, 2 * p.S, p.J))
TPIdist_vec = np.zeros(p.maxiter)
# TPI loop
while (TPIiter < p.maxiter) and (TPIdist >= p.mindist_TPI):
r_gov[:p.T] = fiscal.get_r_gov(r[:p.T], p)
if not p.budget_balance:
K[:p.T] = firm.get_K_from_Y(Y[:p.T], r[:p.T], p, 'TPI')
r_p[:p.T] = aggr.get_r_p(r[:p.T], r_gov[:p.T], K[:p.T], D[:p.T])
outer_loop_vars = (r, w, r_p, BQ, TR, theta)
euler_errors = np.zeros((p.T, 2 * p.S, p.J))
lazy_values = []
for j in range(p.J):
guesses = (guesses_b[:, :, j], guesses_n[:, :, j])
lazy_values.append(
delayed(inner_loop)(guesses, outer_loop_vars, initial_values,
ubi, j, ind, p))
if client:
futures = client.compute(lazy_values, num_workers=p.num_workers)
results = client.gather(futures)
else:
results = results = compute(*lazy_values,
scheduler=dask.multiprocessing.get,
num_workers=p.num_workers)
for j, result in enumerate(results):
euler_errors[:, :, j], b_mat[:, :, j], n_mat[:, :, j] = result
bmat_s = np.zeros((p.T, p.S, p.J))
bmat_s[0, 1:, :] = initial_b[:-1, :]
bmat_s[1:, 1:, :] = b_mat[:p.T - 1, :-1, :]
bmat_splus1 = np.zeros((p.T, p.S, p.J))
bmat_splus1[:, :, :] = b_mat[:p.T, :, :]
etr_params_4D = np.tile(
p.etr_params[:p.T, :, :].reshape(p.T, p.S, 1,
p.etr_params.shape[2]),
(1, 1, p.J, 1))
bqmat = household.get_bq(BQ, None, p, 'TPI')
trmat = household.get_tr(TR, None, p, 'TPI')
tax_mat = tax.net_taxes(r_p[:p.T], w[:p.T], bmat_s, n_mat[:p.T, :, :],
bqmat[:p.T, :, :], factor, trmat[:p.T, :, :],
ubi[:p.T, :, :], theta, 0, None, False, 'TPI',
p.e, etr_params_4D, p)
r_p_path = utils.to_timepath_shape(r_p)
wpath = utils.to_timepath_shape(w)
c_mat = household.get_cons(r_p_path[:p.T, :, :], wpath[:p.T, :, :],
bmat_s, bmat_splus1, n_mat[:p.T, :, :],
bqmat[:p.T, :, :], tax_mat, p.e,
p.tau_c[:p.T, :, :], p)
y_before_tax_mat = household.get_y(r_p_path[:p.T, :, :],
wpath[:p.T, :, :],
bmat_s[:p.T, :, :],
n_mat[:p.T, :, :], p)
(total_tax_rev, iit_payroll_tax_revenue, agg_pension_outlays,
UBI_outlays, bequest_tax_revenue, wealth_tax_revenue,
cons_tax_revenue, business_tax_revenue, payroll_tax_revenue,
iit_revenue) = aggr.revenue(r_p[:p.T], w[:p.T], bmat_s,
n_mat[:p.T, :, :], bqmat[:p.T, :, :],
c_mat[:p.T, :, :], Y[:p.T], L[:p.T],
K[:p.T], factor, ubi[:p.T, :, :], theta,
etr_params_4D, p, 'TPI')
total_tax_revenue[:p.T] = total_tax_rev
dg_fixed_values = (Y, total_tax_revenue, agg_pension_outlays,
UBI_outlays, TR, Gbaseline, D0_baseline)
(Dnew, G[:p.T], D_d[:p.T], D_f[:p.T], new_borrowing,
debt_service, new_borrowing_f) =\
fiscal.D_G_path(r_gov, dg_fixed_values, p)
L[:p.T] = aggr.get_L(n_mat[:p.T], p, 'TPI')
B[1:p.T] = aggr.get_B(bmat_splus1[:p.T], p, 'TPI', False)[:p.T - 1]
K_demand_open = firm.get_K(L[:p.T], p.world_int_rate[:p.T], p, 'TPI')
K[:p.T], K_d[:p.T], K_f[:p.T] = aggr.get_K_splits(
B[:p.T], K_demand_open, D_d[:p.T], p.zeta_K[:p.T])
Ynew = firm.get_Y(K[:p.T], L[:p.T], p, 'TPI')
rnew = r.copy()
rnew[:p.T] = firm.get_r(Ynew[:p.T], K[:p.T], p, 'TPI')
# For case where economy is small open econ
r[p.zeta_K == 1] = p.world_int_rate[p.zeta_K == 1]
r_gov_new = fiscal.get_r_gov(rnew, p)
r_p_new = aggr.get_r_p(rnew[:p.T], r_gov_new[:p.T], K[:p.T],
Dnew[:p.T])
# compute w
wnew = firm.get_w_from_r(rnew[:p.T], p, 'TPI')
b_mat_shift = np.append(np.reshape(initial_b, (1, p.S, p.J)),
b_mat[:p.T - 1, :, :],
axis=0)
BQnew = aggr.get_BQ(r_p_new[:p.T], b_mat_shift, None, p, 'TPI', False)
bqmat_new = household.get_bq(BQnew, None, p, 'TPI')
(total_tax_rev, iit_payroll_tax_revenue, agg_pension_outlays,
UBI_outlays, bequest_tax_revenue, wealth_tax_revenue,
cons_tax_revenue, business_tax_revenue, payroll_tax_revenue,
iit_revenue) = aggr.revenue(r_p_new[:p.T], wnew[:p.T], bmat_s,
n_mat[:p.T, :, :], bqmat_new[:p.T, :, :],
c_mat[:p.T, :, :], Ynew[:p.T], L[:p.T],
K[:p.T], factor, ubi[:p.T, :, :], theta,
etr_params_4D, p, 'TPI')
total_tax_revenue[:p.T] = total_tax_rev
TR_new = fiscal.get_TR(Ynew[:p.T], TR[:p.T], G[:p.T],
total_tax_revenue[:p.T],
agg_pension_outlays[:p.T], UBI_outlays[:p.T], p,
'TPI')
# update vars for next iteration
w[:p.T] = wnew[:p.T]
r[:p.T] = utils.convex_combo(rnew[:p.T], r[:p.T], p.nu)
BQ[:p.T] = utils.convex_combo(BQnew[:p.T], BQ[:p.T], p.nu)
D[:p.T] = Dnew[:p.T]
Y[:p.T] = utils.convex_combo(Ynew[:p.T], Y[:p.T], p.nu)
if not p.baseline_spending:
TR[:p.T] = utils.convex_combo(TR_new[:p.T], TR[:p.T], p.nu)
guesses_b = utils.convex_combo(b_mat, guesses_b, p.nu)
guesses_n = utils.convex_combo(n_mat, guesses_n, p.nu)
print('r diff: ', (rnew[:p.T] - r[:p.T]).max(),
(rnew[:p.T] - r[:p.T]).min())
print('BQ diff: ', (BQnew[:p.T] - BQ[:p.T]).max(),
(BQnew[:p.T] - BQ[:p.T]).min())
print('TR diff: ', (TR_new[:p.T] - TR[:p.T]).max(),
(TR_new[:p.T] - TR[:p.T]).min())
print('Y diff: ', (Ynew[:p.T] - Y[:p.T]).max(),
(Ynew[:p.T] - Y[:p.T]).min())
if not p.baseline_spending:
if TR.all() != 0:
TPIdist = np.array(
list(utils.pct_diff_func(rnew[:p.T], r[:p.T])) + list(
utils.pct_diff_func(BQnew[:p.T], BQ[:p.T]).flatten()) +
list(utils.pct_diff_func(TR_new[:p.T], TR[:p.T]))).max()
else:
TPIdist = np.array(
list(utils.pct_diff_func(rnew[:p.T], r[:p.T])) + list(
utils.pct_diff_func(BQnew[:p.T], BQ[:p.T]).flatten()) +
list(np.abs(TR[:p.T]))).max()
else:
TPIdist = np.array(
list(utils.pct_diff_func(rnew[:p.T], r[:p.T])) +
list(utils.pct_diff_func(BQnew[:p.T], BQ[:p.T]).flatten()) +
list(utils.pct_diff_func(Ynew[:p.T], Y[:p.T]))).max()
TPIdist_vec[TPIiter] = TPIdist
# After T=10, if cycling occurs, drop the value of nu
# wait til after T=10 or so, because sometimes there is a jump up
# in the first couple iterations
# if TPIiter > 10:
# if TPIdist_vec[TPIiter] - TPIdist_vec[TPIiter - 1] > 0:
# nu /= 2
# print 'New Value of nu:', nu
TPIiter += 1
print('Iteration:', TPIiter)
print('\tDistance:', TPIdist)
# Compute effective and marginal tax rates for all agents
mtrx_params_4D = np.tile(
p.mtrx_params[:p.T, :, :].reshape(p.T, p.S, 1, p.mtrx_params.shape[2]),
(1, 1, p.J, 1))
mtry_params_4D = np.tile(
p.mtry_params[:p.T, :, :].reshape(p.T, p.S, 1, p.mtry_params.shape[2]),
(1, 1, p.J, 1))
e_3D = np.tile(p.e.reshape(1, p.S, p.J), (p.T, 1, 1))
mtry_path = tax.MTR_income(r_p_path[:p.T], wpath[:p.T], bmat_s[:p.T, :, :],
n_mat[:p.T, :, :], factor, True, e_3D,
etr_params_4D, mtry_params_4D, p)
mtrx_path = tax.MTR_income(r_p_path[:p.T], wpath[:p.T], bmat_s[:p.T, :, :],
n_mat[:p.T, :, :], factor, False, e_3D,
etr_params_4D, mtrx_params_4D, p)
etr_path = tax.ETR_income(r_p_path[:p.T], wpath[:p.T], bmat_s[:p.T, :, :],
n_mat[:p.T, :, :], factor, e_3D, etr_params_4D,
p)
C = aggr.get_C(c_mat, p, 'TPI')
# Note that implicity in this computation is that immigrants'
# wealth is all in the form of private capital
I_d = aggr.get_I(bmat_splus1[:p.T], K_d[1:p.T + 1], K_d[:p.T], p, 'TPI')
I = aggr.get_I(bmat_splus1[:p.T], K[1:p.T + 1], K[:p.T], p, 'TPI')
# solve resource constraint
# foreign debt service costs
debt_service_f = fiscal.get_debt_service_f(r_p, D_f)
RC_error = aggr.resource_constraint(Y[:p.T - 1], C[:p.T - 1], G[:p.T - 1],
I_d[:p.T - 1], K_f[:p.T - 1],
new_borrowing_f[:p.T - 1],
debt_service_f[:p.T - 1],
r_p[:p.T - 1], p)
# Compute total investment (not just domestic)
I_total = aggr.get_I(None, K[1:p.T + 1], K[:p.T], p, 'total_tpi')
# Compute resource constraint error
rce_max = np.amax(np.abs(RC_error))
print('Max absolute value resource constraint error:', rce_max)
print('Checking time path for violations of constraints.')
for t in range(p.T):
household.constraint_checker_TPI(b_mat[t], n_mat[t], c_mat[t], t,
p.ltilde)
eul_savings = euler_errors[:, :p.S, :].max(1).max(1)
eul_laborleisure = euler_errors[:, p.S:, :].max(1).max(1)
print('Max Euler error, savings: ', eul_savings)
print('Max Euler error labor supply: ', eul_laborleisure)
'''
------------------------------------------------------------------------
Save variables/values so they can be used in other modules
------------------------------------------------------------------------
'''
output = {
'Y': Y[:p.T],
'B': B,
'K': K,
'K_f': K_f,
'K_d': K_d,
'L': L,
'C': C,
'I': I,
'I_total': I_total,
'I_d': I_d,
'BQ': BQ,
'total_tax_revenue': total_tax_revenue,
'business_tax_revenue': business_tax_revenue,
'iit_payroll_tax_revenue': iit_payroll_tax_revenue,
'iit_revenue': iit_revenue,
'payroll_tax_revenue': payroll_tax_revenue,
'TR': TR,
'agg_pension_outlays': agg_pension_outlays,
'bequest_tax_revenue': bequest_tax_revenue,
'wealth_tax_revenue': wealth_tax_revenue,
'cons_tax_revenue': cons_tax_revenue,
'G': G,
'D': D,
'D_f': D_f,
'D_d': D_d,
'r': r,
'r_gov': r_gov,
'r_p': r_p,
'w': w,
'bmat_splus1': bmat_splus1,
'bmat_s': bmat_s[:p.T, :, :],
'n_mat': n_mat[:p.T, :, :],
'c_path': c_mat,
'bq_path': bqmat,
'tr_path': trmat,
'y_before_tax_mat': y_before_tax_mat,
'tax_path': tax_mat,
'eul_savings': eul_savings,
'eul_laborleisure': eul_laborleisure,
'resource_constraint_error': RC_error,
'new_borrowing_f': new_borrowing_f,
'debt_service_f': debt_service_f,
'etr_path': etr_path,
'mtrx_path': mtrx_path,
'mtry_path': mtry_path,
'ubi_path': ubi,
'UBI_path': UBI
}
tpi_dir = os.path.join(p.output_base, "TPI")
utils.mkdirs(tpi_dir)
tpi_vars = os.path.join(tpi_dir, "TPI_vars.pkl")
with open(tpi_vars, "wb") as f:
pickle.dump(output, f)
if np.any(G) < 0:
print('Government spending is negative along transition path' +
' to satisfy budget')
if (((TPIiter >= p.maxiter) or (np.absolute(TPIdist) > p.mindist_TPI))
and ENFORCE_SOLUTION_CHECKS):
raise RuntimeError('Transition path equlibrium not found' +
' (TPIdist)')
if ((np.any(np.absolute(RC_error) >= p.mindist_TPI * 10))
and ENFORCE_SOLUTION_CHECKS):
raise RuntimeError('Transition path equlibrium not found ' +
'(RC_error)')
if ((np.any(np.absolute(eul_savings) >= p.mindist_TPI) or
(np.any(np.absolute(eul_laborleisure) > p.mindist_TPI)))
and ENFORCE_SOLUTION_CHECKS):
raise RuntimeError('Transition path equlibrium not found ' +
'(eulers)')
return output
