compute expected income in ConsIndShockModel with calcExpectations, see

econ-ark#625
sbenthall · Dec 26, 2020 · 1c9129a · 1c9129a
1 parent 435937c
commit 1c9129a
Showing 1 changed file with 5 additions and 1 deletion.
diff --git a/HARK/ConsumptionSaving/ConsIndShockModel.py b/HARK/ConsumptionSaving/ConsIndShockModel.py
@@ -26,6 +26,7 @@
 from HARK.distribution import (
     DiscreteDistribution,
     addDiscreteOutcomeConstantMean,
+    calcExpectation,
     combineIndepDstns,
 )
 from HARK.utilities import (
@@ -2824,7 +2825,10 @@ def calcBoundingValues(self):
         PermShkValsNext = self.IncomeDstn[0][1]
         TranShkValsNext = self.IncomeDstn[0][2]
         ShkPrbsNext = self.IncomeDstn[0][0]
-        ExIncNext = np.dot(ShkPrbsNext, PermShkValsNext * TranShkValsNext)
+        ExIncNext = calcExpectation(
+            IncomeDstn,
+            lambda trans, perm : trans * perm
+        )
         PermShkMinNext = np.min(PermShkValsNext)
         TranShkMinNext = np.min(TranShkValsNext)
         WorstIncNext = PermShkMinNext * TranShkMinNext