|
# Firm prices |
|
if not self.assume_zero_growth: |
|
self.firms.ts.price.append( |
|
self.firms.compute_price( |
|
current_estimated_ppi_inflation=self.economy.ts.current("estimated_ppi_inflation")[0], |
|
previous_average_good_prices=self.economy.ts.current("good_prices"), |
|
ppi_during=self.exogenous.national_accounts_during["PPI (Value)"].values.flatten(), |
|
) |
|
) |
|
|
|
# Firm demand for goods |
|
self.firms.ts.unconstrained_target_intermediate_inputs.append( |
|
self.firms.compute_unconstrained_demand_for_intermediate_inputs( |
|
good_prices=self.economy.ts.current("good_prices") |
|
) |
|
) |
|
self.firms.ts.unconstrained_target_intermediate_inputs_costs.append( |
|
self.firms.compute_unconstrained_demand_for_intermediate_inputs_value( |
|
current_good_prices=self.economy.ts.current("good_prices"), |
|
) |
|
) |
|
self.firms.ts.unconstrained_target_capital_inputs.append( |
|
self.firms.compute_unconstrained_demand_for_capital_inputs( |
|
good_prices=self.economy.ts.current("good_prices") |
|
) |
|
) |
|
self.firms.ts.unconstrained_target_capital_inputs_costs.append( |
|
self.firms.compute_unconstrained_demand_for_capital_inputs_value( |
|
current_good_prices=self.economy.ts.current("good_prices"), |
|
) |
|
) |
The tfp_multipler only impacts the modelling through raising production (compute_production()). It has no impact on firm prices nor firm demand for goods. And yet it should impact both of these.
The prices should decrease (or at least firm profit increase) as firms now can make outputs for cheaper. Firm demand should decrease as fewer inputs are required to create the same amount of output.
