From 1c9129aa48e5859bb486126532042666193909de Mon Sep 17 00:00:00 2001
From: sb <sbenthall@gmail.com>
Date: Sat, 26 Dec 2020 16:11:53 -0500
Subject: [PATCH] compute expected income in ConsIndShockModel with
 calcExpectations, see #625

---
 HARK/ConsumptionSaving/ConsIndShockModel.py | 6 +++++-
 1 file changed, 5 insertions(+), 1 deletion(-)

diff --git a/HARK/ConsumptionSaving/ConsIndShockModel.py b/HARK/ConsumptionSaving/ConsIndShockModel.py
index 00422f46f..58b08174c 100644
--- 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