## Variables η = 1.1 ρ = -0.5 δ = 0.005 r_1 = 0.06 r_2 = -0.02 ### r_1_paper = 0.06 ## yearly ### r_1 = 1+log(1+r_1_paper) ## instantaneous ### r_2_paper = -0.02 ## yearly ### r_2 = 1+log(1+r_2_paper) ## instantaneous γ_1 = 0.03 γ_2 = 0.01 w_2 = 5000 β_2 = 1 λ_1 = 0.5 λ_2 = 0.5 δ_2 = 0.44 q=0.5 ## Initial conditions. Correspond to "year 0". K_init = 10^13 ## 10^13 to afford movement building. 10^14 to have a reasonable amount of direct investment as well. This is close to the net discounted value of US GDP. L_init = 10^4 ## Integration constant c1_forward_shooting = 10^(-8) # As low as possible ## Stepsize stepsize = 0.1 r1_stepsize = ((1+r_1)^stepsize)-1 r2_stepsize = ((1+r_2)^stepsize)-1 ## Notes time it takes to run the simulations ### stepsize = 0.1 => seconds (7s). ### stepsize = 0.01 => minutes (3 mins). ## Knife-edge constant δ = r_1 + η*( (γ_1/(ρ-1)) + max(0,(γ_1*(1-η-ρ)/(η*(ρ-1)))) - max(r_2,(γ_2+γ_1*δ_2*λ_2)/(1-δ_2)) ) knife_edge_constant = (γ_1/(ρ-1)) + ((r_1 - δ)/η) + max(0,(γ_1*(1-η-ρ)/(η*(ρ-1)))) - max(r_2,(γ_2+γ_1*δ_2*λ_2)/(1-δ_2)) ## Interval first = 0 last = 1000 times_forward_shooting = seq(from=first, to=last, by=stepsize) times_reverse_shooting = seq(from=last, to=first, by=-stepsize)