45 lines
1.2 KiB
R
Executable File
45 lines
1.2 KiB
R
Executable File
## Variables
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η = 1.1
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ρ = -0.5
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δ = 0.005
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r_1 = 0.06
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r_2 = -0.02
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### r_1_paper = 0.06 ## yearly
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### r_1 = 1+log(1+r_1_paper) ## instantaneous
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### r_2_paper = -0.02 ## yearly
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### r_2 = 1+log(1+r_2_paper) ## instantaneous
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γ_1 = 0.03
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γ_2 = 0.01
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w_2 = 5000
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β_2 = 1
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λ_1 = 0.5
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λ_2 = 0.5
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δ_2 = 0.44
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q=0.5
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## Initial conditions. Correspond to "year 0".
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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.
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L_init = 10^4
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## Integration constant
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c1_forward_shooting = 10^(-8) # As low as possible
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## Stepsize
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stepsize = 0.1
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r1_stepsize = ((1+r_1)^stepsize)-1
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r2_stepsize = ((1+r_2)^stepsize)-1
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## Notes time it takes to run the simulations
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### stepsize = 0.1 => seconds (7s).
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### stepsize = 0.01 => minutes (3 mins).
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## Knife-edge constant
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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)) )
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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))
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## Interval
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first = 0
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last = 1000
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times_forward_shooting = seq(from=first, to=last, by=stepsize)
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times_reverse_shooting = seq(from=last, to=first, by=-stepsize)
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