quant-econ Solutions: Optimal Taxation

Solutions for http://quant-econ.net/jl/lqramsey.html



In [6]:

    
using QuantEcon
using PyPlot

require("../examples/lqramsey")



In [5]:

    
# Parameters
bet = 1 / 1.05   
rho, mg = .95, .35
A = Float64[0 0 0 rho mg*(1-rho)
            1 0 0 0   0
            0 1 0 0   0
            0 0 1 0   0
            0 0 0 0   1]
C = zeros(5, 1)
C[1, 1] = sqrt(1 - rho^2) * mg / 8
Sg = Float64[1 0 0 0 0]
Sd = Float64[0 0 0 0 0]
Sb = Float64[0 0 0 0 2.135]
Ss = Float64[0 0 0 0 0]
discrete = false
proc = ContStochProcess(A, C)
econ = Economy(bet, Sg, Sd, Sb, Ss, discrete, proc)

T = 50
path = compute_paths(econ, T)
gen_fig_1(path)