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76836a0
update firm objective theory
jdebacker Jun 27, 2023
e5d3a6b
add adj cost functions to docs
jdebacker Jun 28, 2023
373aa16
update firm adj costs and eqn's for adj costs
jdebacker Aug 11, 2023
5784dd4
update SS soln algo for dyn firms
jdebacker Aug 11, 2023
5247f7a
update TPI algorithm for dyn firms
jdebacker Aug 11, 2023
2860928
add stationarized versions of new firm eqn's
jdebacker Aug 14, 2023
84026d2
Merge remote-tracking branch 'upstream/master' into adj_cost_v2
jdebacker Nov 28, 2023
4e80c7a
add adj costs to market clearing
jdebacker Nov 28, 2023
c1da05b
start on fin
jdebacker Nov 28, 2023
3dde6b0
update MC with foreign outflows
jdebacker Dec 5, 2023
8c27018
move from ED for captial to ES of equity
jdebacker Dec 5, 2023
8881311
return on portfolio
jdebacker Dec 5, 2023
115ede5
updates to SS algo:
jdebacker Dec 5, 2023
94cc899
update SS algo
jdebacker Dec 6, 2023
45c336d
fix typo
jdebacker Dec 6, 2023
8803553
fix typos
jdebacker Dec 6, 2023
c6d646d
add adj cost deriv functions and tests
jdebacker Dec 7, 2023
4954a2d
fix typo
jdebacker Dec 7, 2023
97e299d
update V excess supply
jdebacker Dec 7, 2023
475ee21
add profit, update cost of capital
jdebacker Dec 7, 2023
b041fbe
typos and pm eqn
jdebacker Dec 7, 2023
e973dd3
Merge remote-tracking branch 'upstream/master' into adj_cost_v2
jdebacker Feb 24, 2024
68cb111
Merge remote-tracking branch 'upstream/master' into adj_cost_v2
jdebacker Mar 13, 2024
2bb76d0
add funcs to find Y/L and K
jdebacker Mar 13, 2024
6f6c704
update SS algo
jdebacker Mar 13, 2024
d2b01ee
format
jdebacker Mar 13, 2024
55d7be4
fix typo
jdebacker Mar 13, 2024
0ce39d8
more on SS soln algo
jdebacker Mar 13, 2024
2af61cc
add func
jdebacker Mar 14, 2024
c562986
sync to master
jdebacker Mar 20, 2025
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fix typo
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jdebacker committed Mar 13, 2024
commit 55d7be40d70e3977bb09c7fd4dc8b562bb306590
4 changes: 2 additions & 2 deletions docs/book/content/theory/equilibrium.md
Original file line number Diff line number Diff line change
Expand Up @@ -130,7 +130,7 @@ The computational algorithm for solving for the steady-state follows the steps b
```
6. Find $\pi(\bar{K}_m, \bar{K}^{\tau}_m, \bar{L}_m)$ using the steady-state version of {eq}`EqFirmsProfit`
7. Find the value of the firm in steady-state as: $\bar{V}_{m} = \frac{\pi(\bar{K}_m, \bar{K}^{\tau}_m, \bar{L}_m)}{(1+\bar{r})}$
8. Use the steady-state world interest rate $\bar{r}^*$ and labor demand $\bar{L}_m$ to solve for the value of the firm the world interest rate $\bar{V}_m^{r^*}$:
8. Use the steady-state world interest rate $\bar{r}^*$ and labor demand $\bar{L}_m$ to solve for the value of the firm at the world interest rate $\bar{V}_m^{r^*}$:
1. Use $\bar{Y}_{m}$, $\bar{r}^*$, and $\bar{L}_m$ in {eq}`EqStnrzFOC_K` to solve for $\bar{K}_m^{r^*}$.
2. Solve for $\bar{K}_m^{\tau, r^*} = \frac{(1-\tau^{inv})\delta_m \bar{K}^{r^*}_{m}}{\delta^{\tau}_m}$
3. Find $\pi(\bar{K}^{r^*}_m, \bar{K}^{\tau, r^*}_m, \bar{L}_m)$ using the steady-state version of {eq}`EqFirmsProfit`
Expand All @@ -141,7 +141,7 @@ The computational algorithm for solving for the steady-state follows the steps b
3. Use the production function to find $\bar{Y}_M$.
4. Solve for $\bar{K}_M^{\tau} = \frac{(1-\tau^{inv})\delta_M \bar{K}_{M}}{\delta^{\tau}_M}$
5. Find $\pi(\bar{K}_M, \bar{K}^{\tau}_M, \bar{L}_M)$ using the steady-state version of {eq}`EqFirmsProfit`
6. Use the steady-state world interest rate $\bar{r}^*$ and labor demand $\bar{L}_M$ to solve for the value of the firm the world interest rate $\bar{V}_M^{r^*}$:
6. Use the steady-state world interest rate $\bar{r}^*$ and labor demand $\bar{L}_M$ to solve for the value of the firm at the world interest rate $\bar{V}_M^{r^*}$:
1. Use $\bar{L}_{M}$ and $\bar{r}^*$ {eq}`EqStnrzFOC_K` to solve for $\bar{K}_M^{r^*}$. NOTE: may not be an analytical solution here so might have to use a root finder...
2. Solve for $\bar{K}_M^{\tau, r^*} = \frac{(1-\tau^{inv})\delta_M \bar{K}^{r^*}_{M}}{\delta^{\tau}_M}$
3. Find $\bar{pi}_M^{i'}=\pi(\bar{K}^{r^*}_M, \bar{K}^{\tau, r^*}_M, \bar{L}_M)$ using the steady-state version of {eq}`EqFirmsProfit`
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