Add ISKHAKOV_ET_AL_2017 model

OpenSourceEconomics · Feb 29, 2024 · 17b1376 · 17b1376
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commit 17b1376
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diff --git a/tests/test_analytical_solution.py b/tests/test_analytical_solution.py
@@ -7,52 +7,37 @@
 
 """
 
-from copy import deepcopy
-
 import numpy as np
 import pytest
 from lcm._config import TEST_DATA
 from lcm.entry_point import get_lcm_function
 from numpy.testing import assert_array_almost_equal as aaae
 
-from tests.test_models.deterministic import BASE_MODEL_WITH_FILTERS
+from tests.test_models.deterministic import get_model_config, get_params
 
 # ======================================================================================
 # Model specifications
 # ======================================================================================
 
 
-def _get_iskhakov_2017_model(n_periods):
-    model_config = deepcopy(BASE_MODEL_WITH_FILTERS)
-    model_config["n_periods"] = n_periods
-    # remove age and wage functions, as they are not modelled in Iskhakov et al. (2017)
-    model_config["functions"] = {
-        name: func
-        for name, func in model_config["functions"].items()
-        if name not in ("age", "wage")
-    }
-    return model_config
-
-
-def _get_iskhakov_2017_params(disutility_of_work):
-    return {
-        "beta": 0.98,
-        "utility": {"disutility_of_work": disutility_of_work},
-        "next_wealth": {
-            "interest_rate": 0.0,
-        },
-        "labor_income": {"wage": 20.0},
-    }
-
-
 TEST_CASES = {
     "iskhakov_2017_five_periods": {
-        "model": _get_iskhakov_2017_model(n_periods=5),
-        "params": _get_iskhakov_2017_params(disutility_of_work=1.0),
+        "model": get_model_config("iskhakov_et_al_2017", n_periods=5),
+        "params": get_params(
+            beta=0.98,
+            disutility_of_work=1.0,
+            interest_rate=0.0,
+            wage=20.0,
+        ),
     },
     "iskhakov_2017_low_delta": {
-        "model": _get_iskhakov_2017_model(n_periods=3),
-        "params": _get_iskhakov_2017_params(disutility_of_work=0.1),
+        "model": get_model_config("iskhakov_et_al_2017", n_periods=3),
+        "params": get_params(
+            beta=0.98,
+            disutility_of_work=0.1,
+            interest_rate=0.0,
+            wage=20.0,
+        ),
     },
 }
 

diff --git a/tests/test_models/deterministic.py b/tests/test_models/deterministic.py
@@ -1,6 +1,6 @@
 """Example specifications of a deterministic consumption-saving model.
 
-This specification builds on the example model presented in the paper: "The endogenous
+The specification builds on the example model presented in the paper: "The endogenous
 grid method for discrete-continuous dynamic choice models with (or without) taste
 shocks" by Fedor Iskhakov, Thomas H. Jørgensen, John Rust and Bertel Schjerning (2017,
 https://doi.org/10.3982/QE643).
@@ -186,6 +186,38 @@ def absorbing_retirement_filter(retirement, lagged_retirement):
 }
 
 
+ISKHAKOV_ET_AL_2017 = {
+    "functions": {
+        "utility": utility_with_filter,
+        "next_wealth": next_wealth,
+        "next_lagged_retirement": lambda retirement: retirement,
+        "consumption_constraint": consumption_constraint,
+        "absorbing_retirement_filter": absorbing_retirement_filter,
+        "labor_income": labor_income,
+        "working": working,
+    },
+    "choices": {
+        "retirement": {"options": [0, 1]},
+        "consumption": {
+            "grid_type": "linspace",
+            "start": 1,
+            "stop": 400,
+            "n_points": N_GRID_POINTS["consumption"],
+        },
+    },
+    "states": {
+        "wealth": {
+            "grid_type": "linspace",
+            "start": 1,
+            "stop": 400,
+            "n_points": N_GRID_POINTS["wealth"],
+        },
+        "lagged_retirement": {"options": [0, 1]},
+    },
+    "n_periods": 3,
+}
+
+
 # ======================================================================================
 # Get models and params
 # ======================================================================================
@@ -194,6 +226,7 @@ def absorbing_retirement_filter(retirement, lagged_retirement):
     "base": BASE_MODEL,
     "fully_discrete": BASE_MODEL_FULLY_DISCRETE,
     "with_filters": BASE_MODEL_WITH_FILTERS,
+    "iskhakov_et_al_2017": ISKHAKOV_ET_AL_2017,
 }
 
 

diff --git a/tests/test_models/stochastic.py b/tests/test_models/stochastic.py
@@ -1,4 +1,4 @@
-"""Example specifications of a stochastic consumption-saving model.
+"""Example specification of a stochastic consumption-saving model.
 
 This specification is motivated by the example model presented in the paper: "The
 endogenous grid method for discrete-continuous dynamic choice models with (or without)