# Some Examples of Spot Equilibrium Paths with Capital Accumulation Some examples of spot equilibrium paths with capital accumulation. The economy contains a production firm, a capital-leasing firm and a consumer. ```r gemCapitalAccumulation(...) ``` ## Arguments - `...`: arguments to be passed to the function sdm2. ## Examples ```r #### a 3-by-3 example dst.firm1 <- node_new( "prod", type = "CD", alpha = 2, beta = c(0.5, 0.5), "cap", "cc1" ) node_set(dst.firm1, "cc1", type = "Leontief", a = 1, "lab" ) dst.consumer <- dst.firm2 <- node_new( "util", type = "Leontief", a = 1, "prod" ) dstl <- list(dst.firm1, dst.consumer, dst.firm2) B <- matrix(c( 1, 0, 0.5, 0, 0, 1, 0, 0, 0 ), 3, 3, TRUE) S0Exg <- matrix(c( NA, NA, NA, NA, NA, NA, NA, 100, NA ), 3, 3, TRUE) ge <- sdm2( A = dstl, B = B, S0Exg = S0Exg, names.commodity = c("prod", "cap", "lab"), names.agent = c("firm1", "laborer", "firm2"), numeraire = "prod", z0 = c(100, 0, 50), policy = policyMarketClearingPrice, maxIteration = 1, numberOfPeriods = 30, ts = TRUE ) matplot((ge$ts.z), type = "o", pch = 20) matplot((ge$ts.p), type = "o", pch = 20) ## a MCP with labor supply change ge <- sdm2( A = dstl, B = B, S0Exg = S0Exg, names.commodity = c("prod", "cap", "lab"), names.agent = c("firm1", "laborer", "firm2"), numeraire = "prod", z0 = c(400, 200, 400), policy = list( function(time, state) { if (time >= 5) state$S[3, 2] <- 150 state }, policyMarketClearingPrice ), maxIteration = 1, numberOfPeriods = 30, ts = TRUE ) matplot((ge$ts.z), type = "o", pch = 20) matplot((ge$ts.p), type = "o", pch = 20) ## a MCP with transitory technological progress ge <- sdm2( A = dstl, B = B, S0Exg = S0Exg, names.commodity = c("prod", "cap", "lab"), names.agent = c("firm1", "laborer", "firm2"), numeraire = "prod", z0 = c(400, 200, 400), policy = list( function(time, A) { if (time == 5) { A[[1]]$alpha <- 3 } else { A[[1]]$alpha <- 2 } }, policyMarketClearingPrice ), maxIteration = 1, numberOfPeriods = 30, ts = TRUE ) matplot((ge$ts.z), type = "o", pch = 20) matplot((ge$ts.p), type = "o", pch = 20) ## a MCP with permanent technological progress ge <- sdm2( A = dstl, B = B, S0Exg = S0Exg, names.commodity = c("prod", "cap", "lab"), names.agent = c("firm1", "laborer", "firm2"), numeraire = "prod", z0 = c(400, 200, 400), policy = list( function(time, A) { if (time >= 5) { A[[1]]$alpha <- 3 } else { A[[1]]$alpha <- 2 } }, policyMarketClearingPrice ), maxIteration = 1, numberOfPeriods = 30, ts = TRUE ) matplot((ge$ts.z), type = "o", pch = 20) matplot((ge$ts.p), type = "o", pch = 20) #### A 4-by-4 example wherein the capital goods #### have a useful life of two periods. ge <- sdm2( A = function(state) { a.firm1 <- CD_A(alpha = 2, Beta = c(0, 0.5, 0.5, 0), state$p) a.consumer <- c(1, 0, 0, 0) a.firm2 <- c(1, 0, 0, 0) a.firm3 <- c(0, 0, 0, 1) cbind(a.firm1, a.consumer, a.firm2, a.firm3) }, B = matrix(c( 1, 0, 0, 0, 0, 0, 1, 1, 0, 0, 0, 0, 0, 0, 1, 0 ), 4, 4, TRUE), S0Exg = matrix(c( NA, NA, NA, NA, NA, NA, NA, NA, NA, 100, NA, NA, NA, NA, NA, NA ), 4, 4, TRUE), names.commodity = c("prod", "cap", "lab", "prod.used"), names.agent = c("firm1", "consumer", "firm2", "firm3"), numeraire = "prod", policy = policyMarketClearingPrice, z0 = c(100, 100, 100, 100), ts = TRUE, numberOfPeriods = 30, maxIteration = 1 ) matplot(ge$ts.z, type = "o", pch = 20) ``` ## See Also `gemPersistentTechnologicalProgress`

gemCapitalAccumulation function