def Euler3(w, r, e, L_guess, K_guess, B, factor, chi_b, taulump):
'''
Parameters:
w = wage rate (scalar)
r = rental rate (scalar)
e = distribution of abilities (SxJ array)
L_guess = distribution of labor (SxJ array)
K_guess = distribution of capital in period t (S-1 x J array)
B = distribution of incidental bequests (1 x J array)
factor = scaling value to make average income match data
chi_b = discount factor of savings
taulump = lump sum transfer from the government to the households
Returns:
Value of Euler error.
'''
B = B.reshape(1, J)
tax1 = tax.total_taxes_eul3_SS(r, K_guess[-2, :], w, e[-1, :],
L_guess[-1, :], B, bin_weights, factor,
taulump)
cons = get_cons(r, K_guess[-2, :], w, e[-1, :], L_guess[-1, :], B,
bin_weights, K_guess[-1, :], g_y, tax1)
euler = MUc(cons / (1 + tau_sales)) / (1 + tau_sales) - np.exp(
-sigma * g_y) * MUb(chi_b, K_guess[-1, :])
return euler
def Euler3(w, r, e, L_guess, K_guess, B, factor, chi_b, taulump):
"""
Parameters:
w = wage rate (scalar)
r = rental rate (scalar)
e = distribution of abilities (SxJ array)
L_guess = distribution of labor (SxJ array)
K_guess = distribution of capital in period t (S-1 x J array)
B = distribution of incidental bequests (1 x J array)
factor = scaling value to make average income match data
chi_b = discount factor of savings
taulump = lump sum transfer from the government to the households
Returns:
Value of Euler error.
"""
B = B.reshape(1, J)
tax1 = tax.total_taxes_eul3_SS(r, K_guess[-2, :], w, e[-1, :], L_guess[-1, :], B, bin_weights, factor, taulump)
cons = get_cons(r, K_guess[-2, :], w, e[-1, :], L_guess[-1, :], B, bin_weights, K_guess[-1, :], g_y, tax1)
euler = MUc(cons) - np.exp(-sigma * g_y) * MUb(chi_b, K_guess[-1, :])
return euler
def Euler3(w, r, e, n_guess, b_guess, BQ, factor, chi_b, T_H):
'''
Parameters:
w = wage rate (scalar)
r = rental rate (scalar)
e = distribution of abilities (SxJ array)
n_guess = distribution of labor (SxJ array)
b_guess = distribution of capital in period t (S-1 x J array)
B = distribution of incidental bequests (1 x J array)
factor = scaling value to make average income match data
chi_b = discount factor of savings
T_H = lump sum transfer from the government to the households
Returns:
Value of Euler error.
'''
BQ = BQ.reshape(1, J)
tax1 = tax.total_taxes_eul3_SS(r, b_guess[-2, :], w, e[-1, :], n_guess[-1, :], BQ, lambdas, factor, T_H)
cons = get_cons(r, b_guess[-2, :], w, e[-1, :], n_guess[-1, :], BQ, lambdas, b_guess[-1, :], g_y, tax1)
euler = MUc(cons) - np.exp(-sigma * g_y) * MUb(
chi_b, b_guess[-1, :])
return euler