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refactoring PerfForesightConsumerType conditions with checkCondition()
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@sbenthall
sbenthall committed Mar 13, 2020
1 parent d91b196 commit 35808ce
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Showing 2 changed files with 86 additions and 88 deletions.
165 changes: 82 additions & 83 deletions HARK/ConsumptionSaving/ConsIndShockModel.py
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Original file line number Diff line number Diff line change
Expand Up @@ -1849,105 +1849,98 @@ def getPostStates(self):
self.aLvlNow = self.aNrmNow*self.pLvlNow # Useful in some cases to precalculate asset level
return None

def checkAIC(self, verbose):
def checkCondition(self,
name,
test,
messages,
verbose=False):
"""
Checks one condition.
- name : str, name of the condition
- test : a function of self, returns True if condition passes
- messages: a tuple of four strings, for four conditions:
- True, always
- True, verbose
- False, always
- False, verbose
"""
self.conditions[name] = test(self)

print(messages[0].format(self)
if self.conditions[name]
else messages[3].format(self))
if verbose:
print(messages[1].format(self)
if self.conditions[name]
else messages[2].format(self))


def checkAIC(self, verbose = False):
'''
Evaluate and report on the Absolute Impatience Condition
'''
AIF = self.thorn
name = "AIC"
test = lambda agent : agent.thorn < 1

self.AIF = AIF
if AIF<1:
self.AIC = True
if verbose:
print('The value of the absolute impatience factor (AIF) for the supplied parameter values satisfies the Absolute Impatience Condition.', end = " ")
self.violated = False
if verbose:
print(' Because the AIF < 1, the absolute amount of consumption is expected to fall over time.')
print()
else:
self.AIC = False
print('The given type violates the Absolute Impatience Condition with the supplied parameter values; the AIF is %1.5f ' % (AIF), end=" ")
self.violated = True
if verbose:
print(' Because the AIF > 1, the absolute amount of consumption is expected to grow over time')
print()
messages = ("The value of the absolute impatience factor (AIF) for the supplied parameter values satisfies the Absolute Impatience Condition.",
"Because the AIF < 1, the absolute amount of consumption is expected to fall over time.",
"The given type violates the Absolute Impatience Condition with the supplied parameter values; the AIF is {0.thorn}",
"Because the AIF > 1, the absolute amount of consumption is expected to grow over time")

self.checkCondition(name, test, messages, verbose = verbose)

def checkGICPF(self,verbose):
def checkGICPF(self,verbose = False):
'''
Evaluate and report on the Growth Impatience Condition
'''
GIFPF = self.thorn/self.PermGroFac[0]
self.GIFPF = GIFPF
name = "GICPF"

if GIFPF<1:
self.GICPF = True
if verbose:
print('The value of the Growth Impatience Factor for the supplied parameter values satisfies the Perfect Foresight Growth Impatience Condition.', end = " ")
if verbose:
print(' Therefore, for a perfect foresight consumer, the ratio of individual wealth to permanent income will fall indefinitely.')
print()
else:
self.GICPF = False
self.violated = True
print('The given parameter values violate the Perfect Foresight Growth Impatience Condition for this consumer type; the GIFPF is: %2.4f' % (GIFPF), end = " ")
if verbose:
print(' Therefore, for a perfect foresight consumer the ratio of individual wealth to permanent income is expected to grow toward infinity.')
print()
self.GIFPF = self.thorn/self.PermGroFac[0]

test = lambda agent : agent.GIFPF < 1

messages = (
'The value of the Growth Impatience Factor for the supplied parameter values satisfies the Perfect Foresight Growth Impatience Condition.',
' Therefore, for a perfect foresight consumer, the ratio of individual wealth to permanent income will fall indefinitely.',
'The given parameter values violate the Perfect Foresight Growth Impatience Condition for this consumer type; the GIFPF is: {0.GIFPF}',
' Therefore, for a perfect foresight consumer the ratio of individual wealth to permanent income is expected to grow toward infinity.')
self.checkCondition(name, test, messages, verbose = verbose)

def checkRIC(self, verbose):
def checkRIC(self, verbose = False):
'''
Evaluate and report on the Return Impatience Condition
'''

RIF = self.thorn/self.Rfree
self.RIF = RIF
if RIF<1:
self.RIC = True
if verbose:
print('The return impatience factor value for the supplied parameter values satisfies the Return Impatience Condition.', end = " ")
if verbose:
print('Therefore, the limiting consumption function is not c(m)=0 for all m')
print()
else:
self.RIC = False
self.violated = True
print('The given type violates the Return Impatience Condition with the supplied parameter values; the factor is %1.5f ' % (RIF), end = " ")
if verbose:
print('Therefore, the limiting consumption function is c(m)=0 for all m')
print()
self.RIF = self.thorn/self.Rfree

name = "RIC"
test = lambda agent: self.RIF < 1

messages = ('The return impatience factor value for the supplied parameter values satisfies the Return Impatience Condition.',
'Therefore, the limiting consumption function is not c(m)=0 for all m',
'The given type violates the Return Impatience Condition with the supplied parameter values; the factor is {0.RIF}',
'Therefore, the limiting consumption function is c(m)=0 for all m')
self.checkCondition(name, test, messages, verbose = verbose)

def checkFHWC(self,verbose):
def checkFHWC(self,verbose = False):
'''
Evaluate and report on the Finite Human Wealth Condition
'''

FHWF = self.PermGroFac[0]/self.Rfree
self.FHWF = FHWF
if FHWF<1:
self.hNrm = 1.0/(1.0-self.PermGroFac[0]/self.Rfree)
self.FHWC = True
if verbose:
print('The Finite Human wealth factor value for the supplied parameter values satisfies the Finite Human Wealth Condition.', end = " ")
if verbose:
print('Therefore, the limiting consumption function is not c(m)=Infinity')
print('and human wealth normalized by permanent income is %2.5f' % (self.hNrm))
self.cNrmPDV = 1.0/(1.0-self.thorn/self.Rfree)
print('and the PDV of future consumption growth is %2.5f' % (self.cNrmPDV) )
print()
else:
self.FHWC = False
print('The given type violates the Finite Human Wealth Condition; the Finite Human wealth factor value %2.5f ' % (FHWF), end = " ")
self.violated = True
if verbose:
print('Therefore, the limiting consumption function is c(m)=Infinity for all m')
print()
if verbose and self.violated and verbose_reference:
print('[!] For more information on the conditions, see Table 3 in "Theoretical Foundations of Buffer Stock Saving" at http://econ.jhu.edu/people/ccarroll/papers/BufferStockTheory/')
return self.violated
self.FHWF = self.PermGroFac[0]/self.Rfree
self.cNrmPDV = 1.0/(1.0-self.thorn/self.Rfree)

name = "FHWC"
test = lambda agent: self.FHWF < 1

messages = ('The Finite Human wealth factor value for the supplied parameter values satisfies the Finite Human Wealth Condition.',
'Therefore, the limiting consumption function is not c(m)=Infinity\nand human wealth normalized by permanent income is {0.hNrm}\nand the PDV of future consumption growth is {0.cNrmPDV}',
'The given type violates the Finite Human Wealth Condition; the Finite Human wealth factor value {0.FHWF}',
'Therefore, the limiting consumption function is c(m)=Infinity for all m')

self.checkCondition(name, test, messages, verbose = verbose)

def checkConditions(self,verbose=False,verbose_reference=False):
def checkConditions(self,verbose=False):
'''
This method checks whether the instance's type satisfies the
Absolute Impatience Condition (AIC),
Expand All @@ -1959,6 +1952,8 @@ def checkConditions(self,verbose=False,verbose_reference=False):
a nondegenerate solution. To check which conditions are required, in the verbose mode
a reference to the relevant theoretical literature is made.
[!] For more information on the conditions, see Table 3 in "Theoretical Foundations of Buffer Stock Saving" at http://econ.jhu.edu/people/ccarroll/papers/BufferStockTheory/
Parameters
----------
verbose : boolean
Expand All @@ -1971,19 +1966,23 @@ def checkConditions(self,verbose=False,verbose_reference=False):
-------
None
'''
self.conditions = {}

# This method only checks for the conditions for infinite horizon models
# with a 1 period cycle. If these conditions are not met, we exit early.
if self.cycles!=0 or self.T_cycle > 1:
return

self.violated = False

self.thorn = (self.Rfree*self.DiscFac*self.LivPrb[0])**(1/self.CRRA)

self.checkAIC(verbose)
self.checkGICPF(verbose)
self.checkRIC(verbose)
self.checkFHWC(verbose)
self.checkAIC(verbose=verbose)
self.checkGICPF(verbose=verbose)
self.checkRIC(verbose=verbose)
self.checkFHWC(verbose=verbose)

self.violated = any([not self.conditions[c]
for c
in self.conditions])

class IndShockConsumerType(PerfForesightConsumerType):
'''
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9 changes: 4 additions & 5 deletions HARK/ConsumptionSaving/tests/test_PerfForesightConsumerType.py
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Original file line number Diff line number Diff line change
Expand Up @@ -40,11 +40,10 @@ def test_another_solution(self):

def test_checkConditions(self):
self.agent_infinite.checkConditions()

self.assertTrue(self.agent_infinite.AIC)
self.assertTrue(self.agent_infinite.GICPF)
self.assertTrue(self.agent_infinite.RIC)
self.assertTrue(self.agent_infinite.FHWC)
self.assertTrue(self.agent_infinite.conditions['AIC'])
self.assertTrue(self.agent_infinite.conditions['GICPF'])
self.assertTrue(self.agent_infinite.conditions['RIC'])
self.assertTrue(self.agent_infinite.conditions['FHWC'])

def test_simulation(self):

Expand Down

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