Update aggregate remittances in resource constraint in code

rickecon · Sep 18, 2024 · 3714290 · 3714290
1 parent 9cf79d1
commit 3714290
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Showing 4 changed files with 12 additions and 6 deletions.
diff --git a/ogcore/SS.py b/ogcore/SS.py
@@ -568,7 +568,6 @@ def SS_solver(
         p_m (array_like): good prices
         Y (scalar): real GDP
         BQ (array_like): aggregate bequest amount(s)
-        RM (array_like): remittance amount(s)
         TR (scalar): lump sum transfer amount
         factor (scalar): scaling factor converting model units to dollars
         p (OG-Core Specifications object): model parameters
@@ -925,13 +924,15 @@ def SS_solver(
     I_g_vec_ss[-1] = I_g_ss
     net_capital_outflows_vec = np.zeros(p.M)
     net_capital_outflows_vec[-1] = net_capital_outflows
+
     RC = aggr.resource_constraint(
         Y_vec_ss,
         C_m_vec_ss,
         G_vec_ss,
         I_d_vec_ss,
         I_g_vec_ss,
         net_capital_outflows_vec,
+        RM_ss,
     )
     if VERBOSE:
         print("Foreign debt holdings = ", D_f_ss)

diff --git a/ogcore/TPI.py b/ogcore/TPI.py
@@ -1274,7 +1274,8 @@ def run_TPI(p, client=None):
     net_capital_outflows_vec = np.zeros((p.T, p.M))
     net_capital_outflows_vec[:, -1] = net_capital_outflows[: p.T]
     RC_error = aggr.resource_constraint(
-        Y_vec, C_m_vec, G_vec, I_d_vec, I_g_vec, net_capital_outflows_vec
+        Y_vec, C_m_vec, G_vec, I_d_vec, I_g_vec, net_capital_outflows_vec,
+        RM[: p.T]
     )
     # Compute total investment (not just domestic)
     I_total = aggr.get_I(None, K[1 : p.T + 1], K[: p.T], p, "total_tpi")

diff --git a/ogcore/aggregates.py b/ogcore/aggregates.py
@@ -517,15 +517,15 @@ def get_r_p(r, r_gov, p_m, K_vec, K_g, D, MPKg_vec, p, method):
     return np.squeeze(r_p)
 
 
-def resource_constraint(Y, C, G, I_d, I_g, net_capital_flows):
+def resource_constraint(Y, C, G, I_d, I_g, net_capital_flows, RM):
     r"""
     Compute the error in the resource constraint.
 
     .. math::
       \text{rc_error} = \hat{Y}_t - \hat{C}_t -
       \Bigl(e^{g_y}\bigl[1 + \tilde{g}_{n,t+1}\bigr]\hat{K}^d_{t+1} -
       \hat{K}^d_t\Bigr) - \delta\hat{K}_t - \hat{G}_t - \hat{I}_{g,t} -
-      \text{net capital outflows}_t
+      \text{net capital outflows}_t - RM_t
 
     Args:
         Y (array_like): aggregate output by industry
@@ -534,12 +534,13 @@ def resource_constraint(Y, C, G, I_d, I_g, net_capital_flows):
         I_d (array_like): aggregate private investment from domestic households
         I_g (array_like): investment in government capital
         net_capital_flows (array_like): net capital outflows
+        RM (array_like): aggregate remittances
 
     Returns:
         rc_error (array_like): error in the resource constraint
 
     """
-    rc_error = Y - C - I_d - I_g - G - net_capital_flows
+    rc_error = Y - C - I_d - I_g - G - net_capital_flows - RM
 
     return rc_error
 

diff --git a/tests/test_aggregates.py b/tests/test_aggregates.py
@@ -1709,8 +1709,11 @@ def test_resource_constraint():
     I_d = np.array([20, 5, 0.6, 10, 1])
     I_g = np.zeros_like(I_d)
     net_capital_flows = np.array([0.1, 0, 0.016, -1.67, -0.477])
+    RM = np.array([0.0, 0.0, 0.0, 0.0, 0.0])
     expected = np.array([-9.1, 1, 0.974, 13.67, 1.477])
-    test_RC = aggr.resource_constraint(Y, C, G, I_d, I_g, net_capital_flows)
+    test_RC = aggr.resource_constraint(
+        Y, C, G, I_d, I_g, net_capital_flows, RM
+    )
 
     assert np.allclose(test_RC, expected)