akshayshanker / fues_egm Goto Github PK

Hi Akshay,
I tried to reproduce the figures in "retirement_plot.py" and "housing_plot.py" and noticed that some changes are needed.

1. Add settings file (settings/settings.yml) I tried it with a file similar to https://github.com/akshayshanker/Eggsandbasket2.0/blob/master/eggsandbaskets/settings/settings.yml and set lambda to 0.1 which was described as the default value. This did not work
2. in math_funcs.py replace:
   #from HARK.dcegm import calc_segments, calc_multiline_envelope, calc_cross_points
   from HARK.dcegm import calc_nondecreasing_segments, upper_envelope, calc_linear_crossing
   These are the up-to-date functions
3. Add folders to store output (plots)

If you upload the settings file, I am happy to make the changes myself and create a pull request.
Best,
Adrian

@AMonninger FUES upper envelope approximation needs to incorporate explicit intersection points. In the Feb 2023 paper, intersection points are mentioned but are not included so the code agrees with the idea in the proofs: i.e. an understanding that all points are exactly on the upper-envelope of the choice specific value functions. For applications, intersection points will be needed. Two ways to do this. First, use the intersection points calculated here and incorporate them into the refined grid:

https://github.com/akshayshanker/FUES_EGM/blob/9d18fbbd26eea63119436e203d628e984033fb11/FUES/FUES.py#LL343C1-L349C1

Alternatively, these guys have a nice vectorized implementation of FUES:

https://github.com/segsell/dc-egm/blob/main/src/dcegm/fast_upper_envelope.py