def test_calc_r(p, expected_dict):
'''
Test of the calculation of the discount rate function
'''
f_dict = {
'c': {
'mix': p.f_c,
'd': 1.0,
'e': 0.0
},
'pt': {
'mix': p.f_pt,
'd': 1.0,
'e': 0.0
}
}
int_haircut_dict = {
'c': p.interest_deduct_haircut_c,
'pt': p.interest_deduct_haircut_pt
}
E_dict = {'c': p.E_c, 'pt': 0.07}
print('E dict = ', E_dict)
ace_dict = {'c': p.ace_c, 'pt': p.ace_pt}
test_dict = {}
for t in p.entity_list:
test_dict[t] = {}
for f in p.financing_list:
test_dict[t][f] = pf.calc_r(p.u[t], p.nominal_interest_rate,
p.inflation_rate, p.ace_int_rate,
f_dict[t][f], int_haircut_dict[t],
E_dict[t], ace_dict[t])
for k, v in test_dict.items():
for k2, v2 in v.items():
assert (np.allclose(v2, expected_dict[k][k2]))
def test_calc_r(p, expected_dict):
'''
Test of the calculation of the discount rate function
'''
f_dict = {
'c': {
'mix': p.f_c,
'd': 1.0,
'e': 0.0
},
'pt': {
'mix': p.f_pt,
'd': 1.0,
'e': 0.0
}
}
int_haircut_dict = {
'c': p.interest_deduct_haircut_c,
'pt': p.interest_deduct_haircut_pt
}
E_dict = {'c': p.E_c, 'pt': 0.07}
print('E dict = ', E_dict)
ace_dict = {'c': p.ace_c, 'pt': p.ace_pt}
test_dict = pf.calc_r(p, f_dict, int_haircut_dict, E_dict, ace_dict)
for k, v in test_dict.items():
for k2, v2 in v.items():
assert (np.allclose(v2, expected_dict[k][k2]))
def compute_default_params(self):
'''
Does cheap calculations to return parameter values
'''
self.financing_list = ['mix', 'd', 'e']
self.entity_list = ['c', 'nc']
# If new_view, then don't assume don't pay out any dividends
# This becuase under new view, equity investments are financed
# with retained earnings
if self.new_view:
self.m = 1
# Get after-tax return to savers
self.s, E_nc = pf.calc_s(self)
# Set rate of 1st layer of taxation on investment income
self.u = {'c': self.CIT_rate}
if not self.PT_entity_tax_ind.all():
self.u['nc'] = self.tau_nc
else:
self.u['nc'] = self.PT_entity_tax_rate
E_dict = {'c': self.E_c, 'nc': E_nc}
# Allowance for Corporate Equity
ace_dict = {'c': self.ace_c, 'nc': self.ace_nc}
# Limitation on interest deduction
int_haircut_dict = {'c': self.interest_deduct_haircut_corp,
'nc': self.interest_deduct_haircut_PT}
# Debt financing ratios
f_dict = {'c': {'mix': self.f_c, 'd': 1.0, 'e': 0.0},
'nc': {'mix': self.f_nc, 'd': 1.0, 'e': 0.0}}
# Compute firm discount factors
self.r = pf.calc_r(self, f_dict, int_haircut_dict, E_dict, ace_dict)
# Compute firm after-tax rates of return
r_prime = pf.calc_r_prime(self, f_dict, E_dict)
# if no entity level taxes on pass-throughs, ensure mettr and metr
# on non-corp entities the same
if not self.PT_entity_tax_ind:
for f in self.financing_list:
r_prime['nc'][f] = self.s['nc'][f] + self.inflation_rate
# if entity level tax, assume distribute earnings at same rate corps
# distribute dividends and these are taxed at dividends tax rate
# (which seems likely). Also implicitly assumed that if entity
# level tax, then only additional taxes on pass-through income are
# capital gains and dividend taxes
else:
# keep debt and equity financing ratio the same even though now
# entity level tax that might now favor debt
self.s['nc']['mix'] = (self.f_nc * self.s['nc']['d'] +
(1 - self.f_nc) * self.s['c']['e'])
self.r_prime = r_prime
# Map string tax methods into multiple of declining balance
self.tax_methods = {'DB 200%': 2.0, 'DB 150%': 1.5, 'SL': 1.0,
'Economic': 1.0, 'Expensing': 1.0}
# Create dictionaries with depreciation system and rate of bonus
# depreciation by asset class
class_list = [3, 5, 7, 10, 15, 20, 25, 27.5, 39]
class_list_str = [
(str(i) if i != 27.5 else '27_5') for i in class_list
]
self.bonus_deprec = {}
for cl in class_list_str:
self.bonus_deprec[cl] = getattr(
self, 'BonusDeprec_{}yr'.format(cl))
# to handle land and inventories
# this is fixed later, but should work on this
self.bonus_deprec['100'] = 0.0