CGE (version 0.3.3)

CES_mA: CES Monetary Demand Coefficient Matrix

Description

This function computes a CES monetary demand coefficient matrix in a monetary economy.

Usage

CES_mA(sigma, alpha, Beta, p, Theta = NULL)

Arguments

sigma

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

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.

Theta

null or a positive numeric n-by-m matrix.

Value

A n-by-m matrix is computed which indicates the (monetary) demand structure of agents (firms or consumers) with CES 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 <- matrix(1, 6, 1)
Beta <- matrix(c(
  0,   1,  1,   0,   1,   1,
  0.5, 0,  0,   0,   0,   0,
  -1, -1, -1,   0,   0,   0,
  0.5, 0,  0,   0.5, 0,   0,
  0,   0,  0,   0.5, 0,   0,
  0,   0,  0,  -1,  -1,  -1
), 6, 6, TRUE)
p <- c(1, 2, 0.1, 4, 5, 0.1)
CES_mA(rep(-1, 6), alpha, Beta, p)
# }