CGE (version 0.3.3)

CD_A: Cobb-Douglas Demand Structure Matrix

Description

This function computes the Cobb-Douglas demand structure matrix.

Usage

CD_A(alpha, Beta, p)

Arguments

alpha

a nonnegative numeric m-vector or m-by-1 matrix.

Beta

a nonnegative numeric n-by-m matrix whose each column sum equals 1.

p

a nonnegative numeric n-vector or n-by-1 matrix.

Value

A demand coefficient n-by-m matrix is computed which indicates the demands of agents (firms or consumers) for obtaining unit product or utility with Cobb-Douglas production functions or utility functions under the price vector p.

References

LI Wu (2019, ISBN: 9787521804225) General Equilibrium and Structural Dynamics: Perspectives of New Structural Economics. Beijing: Economic Science Press. (In Chinese)

Examples

# NOT RUN {
CD_A(1, c(0.5, 0.5), c(1, 2))

#####
alpha <- c(5, 3, 1)
Beta <- matrix(c(
  0.6, 0.4, 0.2,
  0.1, 0.4, 0.7,
  0.3, 0.2, 0.1
), 3, 3, TRUE)
p <- 1:3
CD_A(alpha, Beta, p)
# }