NonhomotheticCES.jl

A small package to solve for the consumption aggregator for non-homothetic CES preferences as described in

Comin, D., Lashkari, D., & Mestieri, Martí (2021). Structural change with long-run income and price effects. Econometrica, 89(1), 311–374.

using NonhomotheticCES, StaticArrays

U = NonhomotheticCESUtility(σ,  # σ
                            Ω̂s, # LOG sectoral Ωs
                            ϵs) # sectoral ϵs

Ĉ = log_consumption_aggregator(U,
                               Ê,  # LOG expenditure
                               p̂s) # LOG prices

ĉs = log_sectoral_consumptions(U, Ê, p̂s, Ĉ)

Partial derivatives are implemented for AD frameworks:

1. ForwardDiff.jl
2. ChainRulesCore.jl WIP

σ = 0.5, Ω̂₁ = 0.0, Ω̂₂ = 0.0, ϵ₁ = 1.0, ϵ₂ = 2.0, p̂₁ = 0.1, p̂₂ = 0.0 (see script/plot.jl).