Stationary distribution of assets - 2OC

This function solves the stationary distribution of assets Back to full code page https://kritikhanna.github.io/BKS-modified/

Function Inputs : asset grid(1 by M) and entrepreneurial productivity grid(1 by N) relevant model parameters required Calls function hhsave_VFI_2OC.m

Function Outputs :

Contents

function [mt_dis, mt_o, mt_k, mt_l]= hhsave_dis_2OC(varargin)

addpath(genpath('/Users/sidhantkhanna/Desktop/Research/Matlab Code/My codes'));

close all;
bl_profile = false;      % Switch off profile if running a tester/calling from another function
bl_saveimg = true;
if(bl_profile)
profile off;
profile on;
end

addpath(genpath('/Users/sidhantkhanna/Documents/GitHub/BKS modified/'));

if ~isempty(varargin)

    [ar_a,ar_z, ...
        fl_alpha,fl_theta,fl_delta,fl_kappa,fl_r,fl_w,fl_phi,fl_ahi,fl_zhi, ...
         fl_risk,it_zgridno, it_agridno,mt_trans_z,fl_beta, fl_mu, fl_sig,fl_rho, fl_tolvfi, fl_toldis ...
        ] = varargin{:};

    bl_print  = true;
    bl_plot   = false;


else
    close all;

    fl_ahi         = 100;
    fl_zhi         = 2.2;
    it_agridno     = 5;
    it_zgridno     = 6;
    ar_a           = linspace(0,fl_ahi,it_agridno);
    fl_phi         = 0;
    fl_risk        = 1;
    fl_alpha       = 0.4;
    fl_theta       = 0.79-fl_alpha;
    fl_delta       = 0.05;
    fl_kappa       = 0;
    fl_mu          = 0;                   % mean of AR(1) entrepeneurial productivity process
    fl_rho         = 0.9;                 % persistence parameter of the AR(1) entrepreneurial productivity process
    fl_sig         = 0.2;
    fl_lambda      = 3;
    fl_beta        = 0.96;
    [ar_z, mt_trans_z] = mytauchen_z(fl_mu,fl_rho,fl_sig,it_zgridno,fl_lambda);
    ar_z           = exp(ar_z);
    fl_r           = 0.02;
    fl_w           = 1.5;
    fl_tolvfi      = 10^-12;
    fl_toldis      = 10^-12;              % Tolerance level for convergence stationary distribution
    bl_print       = true;

end

fl_R  = fl_r + fl_delta;

% Calling VFI

[mt_vf, mt_pf, mt_oploc, mt_o, mt_k, mt_l]=hhsave_VFI_2OC(ar_a,ar_z, ...
        fl_alpha,fl_theta,fl_delta,fl_kappa,fl_r,fl_w,fl_phi,fl_ahi,fl_zhi, ...
         fl_risk,it_zgridno, it_agridno,mt_trans_z,fl_beta, fl_mu,fl_sig,fl_rho, fl_tolvfi);

Evaluating Stationary Distribution

it_s=1;     % Counting iteration for Convergence to Stationary Distribution
fl_sum1(1)=0; % Variable to check if all elements of Stationary distribution Sum to 1
fl_crit1=1;

P(:,:,it_s+1)=zeros(it_agridno,it_zgridno);
P(:,:,1)=ones(it_agridno,it_zgridno).*(1/(it_agridno*it_zgridno));

while(fl_crit1>fl_toldis)
    P(:,:,it_s+1)=zeros(it_agridno,it_zgridno);
    for i= 1:it_agridno
        for j= 1:it_zgridno
            f=find((ar_a==mt_pf(i,j)));
                    for g=1:it_zgridno
                    P(f,g,it_s+1)= P(f,g,it_s+1)+ mt_trans_z(j,g)*P(i,j,it_s); %evaluates Probability in a particular row and column in the next period
                end
            end
    end
    fl_sum1(it_s+1)=sum(sum(P(:,:,it_s+1))); % sum of all elements of the matrix P(:,:,s) in a particular iteration, which must be equal to 1 for all s
    % we observe that the vector sum1 has value 1 in all the cells on running the code
    mt_diff1=(P(:,:,it_s+1)- P(:,:,it_s));
fl_crit1=norm(mt_diff1);
it_s=it_s+1;
end
fl_Ea=sum(sum(P(:,:,it_s),2).*ar_a');
mt_dis=P(:,:,it_s);

Printing outputs

if(bl_print)
    disp('Below is the Stationary Distribution');
    disp((mt_dis));
    disp('Table for Stationary Distribution at l=0');
    tb_dis = array2table(mt_dis(:,:,1),'VariableNames',{'z1','z2','z3','z4','z5','z6','z7'});
    tb_dis.Properties.RowNames = st_a;
    disp(tb_dis);
    disp('Table for Stationary Distribution at l=1');
    tb_dis = array2table(mt_dis(:,:,1),'VariableNames',{'z1','z2','z3','z4','z5','z6','z7'});
    tb_dis.Properties.RowNames = st_a;
    disp(tb_dis);

 end

if(bl_profile)
profile off;
profile viewer;
st_file_name = '/Users/sidhantkhanna/Documents/GitHub/BKS modified/code/Profile/Households/hhsave_dis_2OC';
profsave(profile('info'), st_file_name);
end

Below is the Stationary Distribution
    0.0040    0.0268    0.0692    0.0692    0.0268    0.0040
    0.0040    0.0268    0.0692    0.0692    0.0268    0.0040
    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000
    0.0000    0.0000    0.0000    0.0000    0.0000    0.0000
    0.0121    0.0805    0.2075    0.2075    0.0805    0.0121

Table for Stationary Distribution at l=0

Error using table.init (line 380)
The VariableNames property must contain one name for each variable in the table.

Error in array2table (line 64)
    t = table.init(vars,nrows,rownames,nvars,varnames);

Error in hhsave_dis_2OC (line 110)
    tb_dis = array2table(mt_dis(:,:,1),'VariableNames',{'z1','z2','z3','z4','z5','z6','z7'});

Published with MATLAB® R2018a