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Paper revision simulations, 2008 Bush Stimulus Checks #18

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FanWangEcon opened this issue Nov 20, 2021 · 0 comments
Open

Paper revision simulations, 2008 Bush Stimulus Checks #18

FanWangEcon opened this issue Nov 20, 2021 · 0 comments
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@FanWangEcon FanWangEcon added the enhancement New feature or request label Nov 20, 2021
FanWangEcon added a commit that referenced this issue Nov 20, 2021
@FanWangEcon
JEDC RR minor COVID SS and MedianY adjustment, new default invoker #18
283a529 
- default COVID invoker has lockdown
@FanWangEcon FanWangEcon changed the title Paper revision simulations Paper revision simulations, 2008 Bush Stimulus Checks Nov 30, 2021
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Solve for P(U|Age, Edu) in 2009 #18
db9b30f 
1. Find P(Age) by three age groups, by simulating distribution and 
aggregating over age groups
2. Compute P(Age, Edu)
3. Given P(U|Age) and P(U|Edu) data, and P(Age, Edu) solve for P(U|Age, 
Edu) given rectilinear restriction using R4Econ Function
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Solve for b, UI benefits share of unemployment income loss recovered #18
4774a95 


Given P(U|Age, Edu) in 2009, given unemploymnet duration parameter 
xi=0.532, solve for the b parameter, the share of lost income recovred 
by unemployment UI benefits.

We know total wage income spent on UI 2.1 percent in 2009. So:

1. we find total wage income given xi and unemployment probabilities in 
2009
2. We multiply (1) by 0.021 to get total spending on UI
3. We divide (2) by lost income due to unemployment given xi and 
unemployment probability by age and education to find b.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Solve for 2008 policy and value functions given 2009 unemployment #18
279b25b 
Given unemployment P(U|Age, Edu), Integrate EV2009 given unemployment 
uncertainty, and solve 2008 policy and value given expected unemployment 
possibility. Note no stimulus received in 2009. 

Due to expected shock, households consume less and save more in 2008 
than under steady-state.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Given 2008 Val+Cons, resolve given differing stimulus amounts #18
615e575 
- Adjust the asset state to be equivalent to the stimulus change, using 
the SNW_A4CHK_WRK_BISEC_VEC function.
- Adjust SNW_A4CHK_WRK_BISEC_VEC function so that it takes in 2008 V and 
C matrixes pre-stored, rather than just the 2020 matrixies

With this structure, the 2008 V and C problem (with stimulus = 0) only 
needs to be solved once, and then via this function, more quickly the V 
anc C given different stimulus amounts is found.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Expected V and C conditional on 2019 (2007) JAEEMK #18
da38101 
THe 2019 and 2007 problems share the same function, have the same idea, 
which is to solve for the expected value of V and C in 2008 and 2020 
from the perspective of 2007 and 2019, where the planner's observable 
information come from. 

There was an older slower function that vignette was based on. Updated 
to FOC based function for the 2019 problem, and added new 2007 tester.

Minimal changes to the SNW_EVUVW19_JMKY problem, which averages over 
JAEEMK states for JMKY states, which are observable to the planner. No 
separate 07 tester for the JMKY function, since 07 and 19 calls are 
identical.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Updating all checks function to allow for bush checks solution #18
708fe7f 
bush checks steps:

1. solve for steady-state
2. solve for unemployed state in 2009 given xi and b for 2009
3. solve for 2008 v and policy given 2009 unemployment uncertainty
4. adjust the asset state based on value and consumption from (3) to see 
the effect of stimulus checks on 2008 v and c
5. take expectation over JAEEMK (age, savings, education, income shock, 
marital, kids) over 2008 conditional on 2007, and then integerate in 
2007 conditional on JMKY

Bush stimulus problem is faster than biden stimulus problem because the 
stimulus checks are evaluated in 2008 given V and C in 2008. For the 
Biden and Trump stimulus problems, stimulus is given ex-post of shock 
realization to both individuals with and without unemployment shocks, so 
have to evaluate stimulus effects for both employed and unmployed type 
households.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
Bush check main solution caller #18
37beea7 
code in bush check parameters

- xi and b
- social security
- unemployment probability (coded in the 08 expectation functions)
- median income normalizer

Note that the 2006 and 2018 steady-state assumed to be the same.
FanWangEcon added a commit that referenced this issue Nov 30, 2021
@FanWangEcon
misc changes: package, path no dropbox, control parameters, bookdown #18
886e50c
FanWangEcon added a commit that referenced this issue Dec 1, 2021
@FanWangEcon
Bush check tax rebate, taxable-income, tax-liability #18
2447d86 
- given 2008 tax schedule, compute taxable income based on tax, kids 
count, and marital status
- given taxable income, using 2008 tax policy, various deductibles etc, 
compute the tax liability
- single formula for stimulus-checks as a function of tax liability and 
income.
FanWangEcon added a commit that referenced this issue Dec 7, 2021
@FanWangEcon
2009 b calibrator minor adjust, allow for spousal income unemp shock #18
acfd84b 


- either let spousal income possible unemployment shock to be 
compensated with UI or not, optimal parameter
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