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minor changes to base R script #32

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minor changes to base R script #32

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43 changes: 22 additions & 21 deletions RBC_R.R
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Original file line number Diff line number Diff line change
Expand Up @@ -12,14 +12,13 @@ bbeta = 0.95; # Discount factor
vProductivity <- c(0.9792, 0.9896, 1.0000, 1.0106, 1.0212);

# Transition matrix
mTransition <- c(0.9727, 0.0273, 0.0000, 0.0000, 0.0000,
0.0041, 0.9806, 0.0153, 0.0000, 0.0000,
0.0000, 0.0082, 0.9837, 0.0082, 0.0000,
0.0000, 0.0000, 0.0153, 0.9806, 0.0041,
0.0000, 0.0000, 0.0000, 0.0273, 0.9727);
mTransition <- c(0.9727, 0.0041, 0, 0, 0,
0.0273, 0.9806, 0.0082, 0, 0,
0, 0.0153, 0.9837, 0.0153, 0,
0, 0, 0.0082, 0.9806, 0.0273,
0, 0, 0, 0.0041, 0.9727);

mTransition <- matrix(mTransition,nrow=5,ncol=5);
mTransition <- t(mTransition)
mTransition <- matrix(mTransition,nrow=5L,ncol=5L);

## 2. Steady State

Expand All @@ -38,35 +37,37 @@ nGridProductivity <- length(vProductivity);

# 3. Required matrices and vectors

mOutput <- matrix(0,nGridCapital,nGridProductivity);
mValueFunction <- matrix(0,nGridCapital,nGridProductivity);
mValueFunctionNew <- matrix(0,nGridCapital,nGridProductivity);
mPolicyFunction <- matrix(0,nGridCapital,nGridProductivity);
expectedValueFunction <- matrix(0,nGridCapital,nGridProductivity);
mOutput <- mValueFunction <- mValueFunctionNew <-
mPolicyFunction <- expectedValueFunction <-
matrix(0,nGridCapital,nGridProductivity);

## 4. We pre-build output for each point in the grid

mOutput = as.matrix(vGridCapital^aalpha)%*%t(as.matrix(vProductivity));
mOutput = (vGridCapital^aalpha)%*%t(vProductivity);

## 5. Main iteration

maxDifference <- 10;
tolerance <- 0.0000001;
iteration <- 0;

# pre-declare 1:n for inner loops
GridProductivityIndex = seq_len(nGridProductivity)
GridCapitalIndex = seq_len(nGridCapital)

while (maxDifference>tolerance){

expectedValueFunction = mValueFunction %*% t(mTransition);

for (nProductivity in 1:nGridProductivity){
for (nProductivity in GridProductivityIndex){

# We start from previous choice (monotonicity of policy function)
gridCapitalNextPeriod <- 1;
gridCapitalNextPeriod <- 1L;

for (nCapital in 1:nGridCapital){
for (nCapital in GridCapitalIndex){

valueHighSoFar <- -100000;
capitalChoice <- vGridCapital[1];
capitalChoice <- vGridCapital[1L];

for (nCapitalNextPeriod in gridCapitalNextPeriod:nGridCapital){

Expand All @@ -92,8 +93,8 @@ while (maxDifference>tolerance){
maxDifference <- max(abs(mValueFunctionNew-mValueFunction));
mValueFunction <- mValueFunctionNew;

iteration = iteration+1;
if ((iteration %% 10)==0 | iteration ==1){
iteration = iteration+1L;
if ((iteration %% 10L)==0L | iteration == 1L){
cat(" Iteration = ", iteration," Sup Diff = ", maxDifference,"\n");
}

Expand All @@ -102,7 +103,7 @@ while (maxDifference>tolerance){
cat(" Iteration = ", iteration," Sup Diff = ", maxDifference,"\n");
cat(" \n")

cat(" My chek = ", mPolicyFunction[1000,3],"\n");
cat(" My chek = ", mPolicyFunction[1000L,3L],"\n");
cat(" \n")

cat(" Time = ", proc.time() - ptm,"\n");
cat(" Time = ", proc.time() - ptm,"\n");