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PerfForesight: add constrained capability #104

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mnwhite opened this issue Jan 13, 2017 · 7 comments
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PerfForesight: add constrained capability #104

mnwhite opened this issue Jan 13, 2017 · 7 comments
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Status: In Progress In Progress and NOT-OK to be merged. Type: Enhancement

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@mnwhite
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mnwhite commented Jan 13, 2017

As is, ConsPerfForesightSolver can't handle (and doesn't task as an input) an artificial borrowing constraint. Fixing this will require a complete rewrite of the solver, which currently only produces a linear cFunc with a single segment. Constrained solution will be piecewise linear, and I think we use information about next period's kink locations to find this period's.

Could be done in conjunction with fixing issue #75.

@mnwhite
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mnwhite commented Mar 16, 2017

Related, Sheng Guo at FIU tried to use PerfForesight to solve a cake-eating problem (endowment only, no income), but there is currently no way to do this. A while back we briefly discussed adding a boolean input for PerfForesightSolver that specifies whether income will be received next period. This would allow solution to perfect foresight models where income is only received in some periods, as well as cake-eating problems with no income at all.

@mnwhite
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mnwhite commented Mar 16, 2017

Clarification: You can't do a cake-eating problem with the perfect foresight model. I believe you can do it with ConsIndShock.

@compumetrika
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compumetrika commented Mar 17, 2017 via email

@mnwhite
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mnwhite commented May 19, 2017

One of my graduate students is tackling this for her project for my numeric methods class.

@mnwhite
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mnwhite commented Nov 2, 2017

The student has (more or less) completed the work for this. I will try to move it over and give her credit.

@mnwhite mnwhite added Status: In Progress In Progress and NOT-OK to be merged. Type: Enhancement labels Nov 2, 2017
@mnwhite
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mnwhite commented Sep 5, 2019

This has been completed and ready to merge for a couple months; see #299

@MridulS
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MridulS commented Jul 28, 2020

#299 is merged, closing this.

@MridulS MridulS closed this as completed Jul 28, 2020
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