# Transition dynamics k1 <- function(t){ numerator = c1_forward_shooting*exp((δ-r_1)*t) denom1 = ((q*w_2)/(1-q))^(ρ/(1-ρ)) denom2=exp((γ_1*ρ/(1-ρ))*t) denomexponent = ((1-η)/ρ)-1 denominator = q*((q+denom1*denom2*(1-q))^denomexponent) result_k1 = (numerator/denominator)^(-1/η) return(result_k1) } k1_prime <- function(t){ numerator = c1_forward_shooting * exp((δ-r_1)*t) denominator_part1 = ((q*w_2)/(1-q))^(ρ/(1-ρ)) denominator_part2 = exp( ( (γ_1*ρ)/(1-ρ) )*t )*(1-q)*denominator_part1 denominator_part3 = (q+denominator_part2) denominator_part4 = denominator_part3^( ( (1-η)/ ρ ) - 1) denominator_part5 = q*denominator_part4 denominator = denominator_part5 exponent_total = (-1/η) result_k1 = (numerator/denominator)^exponent_total return(result_k1) } k2 <- function(t){ constant1_k2 = (w_2 * λ_2 * δ_2)/(δ-r_2) constant2_k2 = ((1-λ_2)/λ_2)^(δ_2*(1-λ_2)) constant_exponent = (1/(1-δ_2)) constant_term_k2 = (constant1_k2*constant2_k2)^constant_exponent exponential_growth_term_k2 = (γ_2+γ_1*δ_2*λ_2)/(1-δ_2) + γ_1 exponential_term_k2 = exp(exponential_growth_term_k2*t) result_k2 = constant_term_k2*exponential_term_k2 return(result_k2) } l1 <- function(t, k1_t, L_t){ constant_term_l1 = ((q*w_2)/(1-q))^(1/(ρ-1)) exponential_term_l1 = exp((γ_1/(ρ-1))*t) result_l1 = (constant_term_l1*exponential_term_l1*k1_t)/L_t return(result_l1) } l2 <- function(t, k2_t, L_t){ constant_term_l2 = (1-λ_2)/(w_2*λ_2) exponential_term_l2 = exp(γ_1*t) result_l2 = (constant_term_l2*k2_t) / (exponential_term_l2*L_t) return(result_l2) } dL <- function(t,k2_t,L_t,l2_t){ dynamical_term_dL= ((k2_t^λ_2)*((L_t*l2_t)^(1-λ_2)))^(δ_2) result_dL = r_2*L_t + β_2*exp(γ_2*t)*dynamical_term_dL return(result_dL) } wagesPaidOrEarned <- function(L_t, t, l1_t, l2_t){ result_wages = L_t*w_2*exp(γ_1*t)*(1-l1_t-l2_t) return(result_wages) } dK <- function(t,K_t,k1_t,k2_t,L_t,l1_t,l2_t){ result_dK = r_1*K_t - k1_t - k2_t + L_t*w_2*exp(γ_1*t)*(1-l1_t-l2_t) return(result_dK) }