CGE (version 0.3.3)

CD_mA: Cobb-Douglas Monetary Demand Structure Matrix

Description

This function computes a Cobb-Douglas monetary demand structure matrix in a monetary economy.

Usage

CD_mA(alpha, Beta, p)

Arguments

alpha

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

Beta

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 n-by-m matrix is computed which indicates the (monetary) demand structure of agents (firms or consumers) with Cobb-Douglas production functions or utility functions under the price vector p.

Details

Some elements of Beta corresponding to money equal -1.

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 {
alpha <- c(1, 1, 1)
Beta <- matrix(c(
  0.5, 0.5, 0.5,
  0.5, 0.5, 0.5,
  -1,  -1,  -1
), 3, 3, TRUE)
p <- c(1, 2, 0.1)
CD_mA(alpha, Beta, p)
# }