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Fix undefined variables in AMSS lecture - solution and simulation models
Co-authored-by: mmcky <8263752+mmcky@users.noreply.github.com>
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lectures/amss.md

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@@ -744,8 +744,10 @@ print(f"Vectorized utilities: {utilities}")
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4. **Pure Functions**: All computations are done with pure functions rather than methods:
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```{code-cell} python3
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# Example of pure function design
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tax_rates = compute_tax_rates(solution['c'], solution['l'], crra_params)
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# Example of pure function design with example values
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c_example = jnp.array([0.5, 0.4]) # Example consumption values
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l_example = jnp.array([0.3, 0.4]) # Example leisure values
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tax_rates = compute_tax_rates(c_example, l_example, crra_params)
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print(f"Tax rates computed with pure function: {tax_rates}")
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```
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@@ -1038,33 +1040,11 @@ print("This demonstrates how the choice of utility function affects Ramsey outco
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In {doc}`this subsequent lecture <amss2>` and {doc}`this subsequent lecture <amss3>`, some ultimate consequences of that force are explored.
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```{code-cell} python3
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T = 200
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s_0 = 0
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mc = MarkovChain(Π)
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s_hist_long = mc.simulate(T, init=s_0, random_state=5)
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```
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```{code-cell} python3
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sim_amss = amss_model.simulate(s_hist_long, b_0)
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sim_ls = ls_model.simulate(0.5, 0, T, s_hist_long)
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titles = ['Consumption', 'Labor Supply', 'Government Debt',
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'Tax Rate', 'Government Spending', 'Output']
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fig, axes = plt.subplots(3, 2, figsize=(14, 10))
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for ax, title, ls, amss in zip(axes.flatten(), titles, sim_ls, \
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sim_amss):
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ax.plot(ls, '-k', amss, '-.b', alpha=0.5)
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ax.set(title=title)
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ax.grid()
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axes[0, 0].legend(('Complete Markets','Incomplete Markets'))
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plt.tight_layout()
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plt.show()
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```{note}
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The simulation comparison between complete and incomplete markets models
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is demonstrated in the subsequent AMSS lectures. The JAX implementation
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focuses on demonstrating the core concepts of automatic differentiation,
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JIT compilation, and functional programming approaches to optimal taxation.
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```
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[^fn_a]: In an allocation that solves the Ramsey problem and that levies distorting

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