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Reparameterize bequest motive #27

Merged
merged 2 commits into from
Nov 27, 2024
Merged

Reparameterize bequest motive #27

merged 2 commits into from
Nov 27, 2024

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mnwhite
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@mnwhite mnwhite commented Nov 21, 2024

This implements the re-parameterization of the bequest motive from (BeqFac, BeqShift) to (BeqMPC, BeqInt). The mapping is:

BeqMPC = BeqFac^(-1/CRRA) ... BeqInt = BeqShift * BeqMPC

The inverse of that mapping is applied in the WarmGlow specifications of this estimation, because the AgentType subclass still uses BeqFac and BeqShift. I have verified that do_all.py works as intended after the changes.

Bequest motive now uses BeqMPC and BeqInt rather than BeqFac and BeqShift. Gets interpretable results.
Also fixed an error with default choice.
@alanlujan91 alanlujan91 merged commit 2176ceb into main Nov 27, 2024
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2 participants