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Merged
merged 7 commits into from
Jun 6, 2023
Merged

Add Equalizing Difference Model #207

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fcbfc2c
add equal_diff
HumphreyYang Jun 1, 2023
014dc6b
update headings
HumphreyYang Jun 1, 2023
d79a13f
exclude networks for preview
HumphreyYang Jun 1, 2023
7457630
add networks
HumphreyYang Jun 3, 2023
7a6f98e
Merge branch 'main' into equalizing_diff
HumphreyYang Jun 5, 2023
5c35b28
resolve conflict
HumphreyYang Jun 6, 2023
925363d
Merge branch 'main' into equalizing_diff
HumphreyYang Jun 6, 2023
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1 change: 1 addition & 0 deletions lectures/_toc.yml
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Expand Up @@ -22,6 +22,7 @@ parts:
chapters:
- file: pv
- file: cons_smooth
- file: equalizing_difference
- file: cagan_ree
- file: geom_series
- caption: Probability and Distributions
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12 changes: 4 additions & 8 deletions sandpit/equalizing_difference.md → lectures/equalizing_difference.md
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Expand Up @@ -11,9 +11,7 @@ kernelspec:
name: python3
---

+++ {"user_expressions": []}

### Equalizing Difference Model
# Equalizing Difference Model

This notebook presents a model of the college-high-school wage gap in which the
"time to build" a college graduate plays a key role.
Expand All @@ -31,8 +29,6 @@ import numpy as np
import matplotlib.pyplot as plt
```

+++ {"user_expressions": []}

Let

* $R > 0$ be the gross rate of return on a one-period bond
Expand Down Expand Up @@ -114,7 +110,7 @@ $$
$$


#### Tweaked Model: Workers and Entrepreneurs
## Tweaked Model: Workers and Entrepreneurs


We can add a parameter and reinterpret variables to get a model of entrepreuneurs versus workers.
Expand Down Expand Up @@ -165,7 +161,7 @@ class equalizing_diff:
return ϕ
```

+++ {"user_expressions": []}


We can build some functions to help do comparative statics using vectorization instead of loops.

Expand Down Expand Up @@ -216,7 +212,7 @@ gap1 = ex1.compute_gap()
print(gap1)
```

+++ {"user_expressions": []}


Let us plot $\phi$ against some parameters.

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