Merge pull request #1509 from akshayshanker/master

Makes title of SSJ example more informative
econ-ark · Jan 8, 2025 · da3442e · da3442e
2 parents 7cfd046 + 1e8e45d
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diff --git a/Documentation/CHANGELOG.md b/Documentation/CHANGELOG.md
@@ -48,6 +48,7 @@ none
 
 - Adds example of integration of HARK with SSJ toolkit. [#1447](https://github.com/econ-ark/HARK/pull/1447)
 - Maintains compatibility between EconForge interpolation and numba [#1457](https://github.com/econ-ark/HARK/pull/1457)
+- Renanmes 'SSJ_example' to 'HANKFiscal_example' so that it is more informative. [#1509](https://github.com/econ-ark/HARK/pull/1509)
 
 ### 0.15.0
 

diff --git a/Documentation/example_notebooks/Include_list.txt b/Documentation/example_notebooks/Include_list.txt
@@ -11,4 +11,5 @@ examples/Journeys/Journey-PhD.ipynb
 examples/ConsNewKeynesianModel/Transition_Matrix_Example.ipynb
 examples/ConsNewKeynesianModel/Jacobian_Example.ipynb
 examples/ConsNewKeynesianModel/KS-HARK-presentation.ipynb
-examples/ConsNewKeynesianModel/SSJ_example.ipynb
+examples/ConsNewKeynesianModel/SSJ_explanation.ipynb
+examples/ConsNewKeynesianModel/HANKFiscal_example.ipynb
diff --git a/Documentation/overview/index.rst b/Documentation/overview/index.rst
@@ -28,7 +28,8 @@ Overview
    ../../examples/ConsNewKeynesianModel/Transition_Matrix_Example.ipynb
    ../../examples/ConsNewKeynesianModel/Jacobian_Example.ipynb
    ../../examples/ConsNewKeynesianModel/KS-HARK-presentation.ipynb
-   ../../examples/ConsNewKeynesianModel/SSJ_example.ipynb
+   ../../examples/ConsNewKeynesianModel/HANKFiscal_example.ipynb
+   ../../examples/ConsNewKeynesianModel/SSJ_explanation.ipynb
 
 .. toctree::
    :hidden:

diff --git a/...s/ConsNewKeynesianModel/SSJ_example.ipynb → ...ewKeynesianModel/HANKFiscal_example.ipynb b/...s/ConsNewKeynesianModel/SSJ_example.ipynb → ...ewKeynesianModel/HANKFiscal_example.ipynb
@@ -5,11 +5,11 @@
    "id": "9aff8c24",
    "metadata": {},
    "source": [
-    "# HARK and the Sequence Space Jacobian (SSJ) Method\n",
+    "# Fiscal Policy in a HANK model using HARK and SSJ\n",
     "\n",
     "By William Du ([email protected]) \n",
     "\n",
-    "- This notebook demonstrates how HARK and the SSJ toolkit can be combined to solve HANK models.\n",
+    "- This notebook demonstrates how HARK and the SSJ toolkit can be combined to the canonical HANK model with fiscal policy \n",
     "- Content here builds on the excellent foundation of this [SSJ notebook](https://github.com/shade-econ/nber-workshop-2022/blob/main/Tutorials/Tutorial%201%20Fiscal%20Policy.ipynb) \n",
     "\n",
     "## HARK Solves for the Microeconomic Steady State\n",

diff --git a/examples/ConsNewKeynesianModel/SSJ_explanation.ipynb b/examples/ConsNewKeynesianModel/SSJ_explanation.ipynb
@@ -27,7 +27,7 @@
    "id": "10f78487",
    "metadata": {},
    "source": [
-    "# Advantages of SSJ\n",
+    "## Advantages of SSJ\n",
     "\n",
     "Can solve general equilibrium models with rich microeconomic heterogeneity quickly. (Basic HANK models can take 3 seconds, previous methods take at least 15 minutes)\n",
     "\n",
@@ -47,7 +47,7 @@
    "id": "4f1bf1b5",
    "metadata": {},
    "source": [
-    " ### Households\n",
+    "### Households\n",
     "\n",
     "Assume a continuum of atomistic households on the unit interval $[0,1]$ indexed by i. \n",
     "\n",
@@ -82,7 +82,6 @@
     "\n",
     "$y_{it}$ is labor income.\n",
     "\n",
-    "\n",
     "#### Labor Income\n",
     "\n",
     "Labor income is the product of an idiosyncratic transitory shock $\\theta$, the wage rate $w$ (determined in aggregate), and the exogenously fixed individual labor supply $\\ell$. \n",
@@ -97,13 +96,13 @@
    "id": "405ddb01",
    "metadata": {},
    "source": [
-    "## Firms and Production\n",
+    "### Firms and Production\n",
     "\n",
     "Output is produced by firms via a Cobb-Douglas production function over aggregate capital $K_t$ and labor $L_t$, scaled by total factor productivity $Z_t$:\n",
     "\n",
     "$$Y_{t} = Z_{t}K_{t}^{\\alpha}L_{t}^{1-\\alpha}.$$\n",
     "\n",
-    "### Determination of Wage and Interest Rates\n",
+    "#### Determination of Wage and Interest Rates\n",
     "\n",
     "Assume perfectly competitive markets, so that the factor prices are given by their marginal product:\n",
     "\n",
@@ -115,7 +114,7 @@
     "r_{t} = \\alpha  Z_{t} K_{t}^{\\alpha - 1} L_{t}^{1-\\alpha}.\n",
     "$$\n",
     "\n",
-    "### Dynamics of Productivity\n",
+    "#### Dynamics of Productivity\n",
     "\n",
     "TFP $Z_t$ follows an AR(1) process in logs, with correlation factor $\\rho_Z$ and standard deviation of shocks $\\sigma_Z$.\n",
     "\n",
@@ -129,7 +128,7 @@
    "id": "ebeea820",
    "metadata": {},
    "source": [
-    "## Market Clearing \n",
+    "### Market Clearing \n",
     "\n",
     "Aggregate capital and labor are found by aggregating idiosyncratic values over the population. For labor, this is trivial, as each household exogenously supplies $\\ell$ units of labor. To denote the switch to aggregate labor, apply a new label:\n",
     "\n",
@@ -142,19 +141,13 @@
     "Notice that aggregate capital $K_t$ depends on the entire distribution of idiosyncratic market resources $m_{it}$."
    ]
   },
-  {
-   "cell_type": "markdown",
-   "id": "12cc8957",
-   "metadata": {},
-   "source": [
-    "# The model as a system of difference equations in sequence space"
-   ]
-  },
   {
    "cell_type": "markdown",
    "id": "01ee68b8",
    "metadata": {},
    "source": [
+    "## The model as a system of difference equations in sequence space\n",
+    "\n",
     "The equilibrium of this model can be expressed as a root of a system of difference equations on the sequence of current and future prices and productivity shocks. For notational convenience, the sequence of aggregate outcomes will be represented by $\\textbf{U}$, and the sequence of productivity shocks by $\\textbf{Z}$. For period $t$, the equilibrium conditions are:\n",
     "\n",
     "$$ H_{t}(\\mathbf{U},\\mathbf{Z}) = \\begin{pmatrix} \n",
@@ -185,7 +178,7 @@
    "id": "a545e7ca",
    "metadata": {},
    "source": [
-    "# Solve the model by linearizing around the steady state\n",
+    "## Solve the model by linearizing around the steady state\n",
     "\n",
     "We are interested in how aggregate outcomes will change in response to exogenous shocks. Denote the endogenous impulse response as $d\\mathbf{U} \\equiv \\left\\{dK_{t} , dr_{t} , dw_{t} \\right\\}_{t=0}^{t=T}$, and the exogenous shock (a change in future productivity shocks) as $d\\mathbf{Z} = \\left\\{ dZ_{t}\\right\\}_{t=0}^{t=T}$.\n",
     "\n",