Time varying unemployment probability and income

Documentation/CHANGELOG.md

@@ -21,6 +21,7 @@ Release Date: TBD
 ### Minor Changes
 
 * Updates the lognormal-income-process constructor from `ConsIndShockModel.py` to use `IndexDistribution`. [#1024](https://github.com/econ-ark/HARK/pull/1024)
+* Allows for age-varying unemployment probabilities and replacement incomes with the lognormal income process constructor. [#1112](https://github.com/econ-ark/HARK/pull/1112)
 
 ### 0.12.0
 

HARK/ConsumptionSaving/ConsIndShockModel.py

@@ -2695,8 +2695,32 @@ def construct_lognormal_income_process_unemployment(self):
             normal_length = T_cycle
             retire_length = 0
 
-        UnempPrb_list = [UnempPrb] * normal_length + [UnempPrbRet] * retire_length
-        IncUnemp_list = [IncUnemp] * normal_length + [IncUnempRet] * retire_length
+        # Unemployment parametrs can be given either as:
+        if all(
+            [
+                isinstance(x, float)
+                for x in [UnempPrb, IncUnemp, UnempPrbRet, IncUnempRet]
+            ]
+        ):
+
+            UnempPrb_list = [UnempPrb] * normal_length + [UnempPrbRet] * retire_length
+            IncUnemp_list = [IncUnemp] * normal_length + [IncUnempRet] * retire_length
+
+        elif all([isinstance(x, list) for x in [UnempPrb, IncUnemp]]):
+
+            UnempPrb_list = UnempPrb
+            IncUnemp_list = IncUnemp
+
+        else:
+
+            raise Exception(
+                "Unemployment must be specified either using floats for UnempPrb,"
+                + "IncUnemp, UnempPrbRet, and IncUnempRet, in which case the "
+                + "unemployment probability and income change only with retirement, or "
+                + "using lists of length T_cycle for UnempPrb and IncUnemp, specifying "
+                + "each feature at every age."
+            )
+
         PermShkCount_list = [PermShkCount] * normal_length + [1] * retire_length
         TranShkCount_list = [TranShkCount] * normal_length + [1] * retire_length
 

HARK/ConsumptionSaving/tests/test_ConsMarkovModel.py

@@ -54,7 +54,7 @@ def setUp(self):
         init_serial_unemployment["MrkvArray"] = [MrkvArray]
         init_serial_unemployment[
             "UnempPrb"
-        ] = 0  # to make income distribution when employed
+        ] = 0.0  # to make income distribution when employed
         init_serial_unemployment["global_markov"] = False
         self.model = MarkovConsumerType(**init_serial_unemployment)
         self.model.cycles = 0

HARK/ConsumptionSaving/tests/test_modelInits.py

@@ -91,7 +91,7 @@ def test_MarkovConsumerType(self):
             init_serial_unemployment["MrkvArray"] = [MrkvArray]
             init_serial_unemployment[
                 "UnempPrb"
-            ] = 0  # to make income distribution when employed
+            ] = 0.0  # to make income distribution when employed
             init_serial_unemployment["global_markov"] = False
             SerialUnemploymentExample = MarkovConsumerType(**init_serial_unemployment)
         except: