Elliptical Utility Function Estimation

elliptical_u_est.py modules

ogcore.elliptical_u_est

constant Frisch elasticity function with the input Frisch elasticity.

ogcore.elliptical_u_est.CFE_mu(theta, l_tilde, n)[source]

Marginal disutility of labor supply from the constant Frisch elasticity utility function

Parameters
  • theta (scalar) – inverse of the Frisch elasticity of labor supply

  • l_tilde (scalar) – maximum amount of labor supply

  • n (array_like) – labor supply amount

Returns

marginal disutility of labor supply

Return type

mu (array_like)

ogcore.elliptical_u_est.CFE_u(theta, l_tilde, n)[source]

Disutility of labor supply from the constant Frisch elasticity utility function.

Parameters
  • theta (scalar) – inverse of the Frisch elasticity of labor supply

  • l_tilde (scalar) – maximum amount of labor supply

  • n (array_like) – labor supply amount

Returns

disutility of labor supply

Return type

u (array_like)

ogcore.elliptical_u_est.elliptical_mu(b, upsilon, l_tilde, n)[source]

Marginal disutility of labor supply from the elliptical utility function

Parameters
  • b (scalar) – scale parameter of elliptical utility function

  • upsilon (scalar) – curvature parameter of elliptical utility function

  • l_tilde (scalar) – maximum amount of labor supply

  • n (array_like) – labor supply amount

Returns

marginal disutility of labor supply

Return type

mu (array_like)

ogcore.elliptical_u_est.elliptical_u(b, k, upsilon, l_tilde, n)[source]

Disutility of labor supply from the elliptical utility function

Parameters
  • b (scalar) – scale parameter of elliptical utility function

  • k (scalar) – shift parametr of elliptical utility function

  • upsilon (scalar) – curvature parameter of elliptical utility function

  • l_tilde (scalar) – maximum amount of labor supply

  • n (array_like) – labor supply amount

Returns

disutility of labor supply

Return type

u (array_like)

ogcore.elliptical_u_est.estimation(frisch, l_tilde)[source]

This function estimates the parameters of an elliptical utility funcion that fits a constant frisch elasticty function.

Parameters
  • frisch (scalar) – Frisch elasticity of labor supply

  • l_tilde (scalar) – maximum amount of labor supply

Returns

estimated b from ellipitical utility function upsilon_MU_til (scalar): estimated upsilon from ellipitical

utility function

Return type

b_MU_til (scalar)

ogcore.elliptical_u_est.sumsq(params, *objs)[source]

This function generates the sum of squared deviations between the constant Frisch elasticity function and the elliptical utility function.

Parameters
  • params (tuple) – parameters to estimate, (b, k, upsilon)

  • objs (tuple) – other parameters of utility function, (theta, l_tilde, n_grid)

Returns

sum of squared errors

Return type

ssqdev (scalar)

ogcore.elliptical_u_est.sumsq_MU(params, *objs)[source]

This function generates the sum of squared deviations between the marginals of the constant Frisch elasticity function and the elliptical utility function

Parameters
  • params (tuple) – parameters to estimate, (b, k, upsilon)

  • objs (tuple) – other parameters of utility function, (theta, l_tilde, n_grid)

Returns

sum of squared errors

Return type

ssqdev (scalar)