Household Equations

Household

open_cge.household

open_cge.household.eqF(beta, py, Y, pf)

Factor demand.

\[F_{h,j} = \beta_{h,j}\frac{py_{j}}{pf_{h}}Y_{j}\]

Parameters

• beta (2D numpy array) – Cost share parameter for factor h in production of good j

• py (1D array) – The price of value added for each good j

• Y (1D numpy array) – Value added for each good j

• pf (1D array) – Price of each factor h

Returns

The demand for factor h used in the

production of good j

Return type

F (2D numpy array)

open_cge.household.eqI(pf, Ff, Sp, Td, Fsh, Trf)

Total income of consumers.

\[I = \left(\sum_{h}pf_{h}Ff_{h} - S^{p} - T^{d}- FSH - TRF\right)\]

Parameters

• pf (1D numpy array) – The price of factor h

• Ff (1D numpy array) – Endowment of factor h

• Sp (float) – Total household savings

• Td (float) – Total direct tax revenue

• = Repatriated profits (Fsh) –

• Trf (float) – Total transfers to households

Returns

Total income of consumers

Return type

I (float)

open_cge.household.eqXp(alpha, I, pq)

Demand for production good i by consumers.

\[X^{p}_{i}= \frac{\alpha_{i}}{pq_{i}}I\]

Parameters

• alpha (1D numpy array) – Budget share of good i

• I (float) – Total income of consumers

• pq (1D numpy array) – price of the Armington good (domestic + imports) for each good i

Returns

Demand for production good i by consumers

Return type

Xp (1D numpy array)