Fix timing inconsistencies and code bugs (re-base of #587)#753
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In cons_smooth.md and tax_smooth.md:
- Fix budget constraint computation: missing factor of R in
np.linalg.inv(A) @ b (should be @ (R * b)).
- Fix plot functions referencing global cs_model/tax_model instead
of the model argument, which would silently ignore the model
parameter if the function is called with a different model.
In cagan_ree.md:
- Fix off-by-one timing in μ_seq construction and continuation paths.
- Add π_seq_2 boundary adjustment at T1-1 for regime continuity.
- Fix swapped Smooth/Jumpy labels in the p-plot (now reads as $m_{T_1}$
to match the m-plot variants).
- Add note that γ* = 1 is assumed in solve().
Extracted from #587 (HumphreyYang) onto current main.
Co-Authored-By: Humphrey Yang <u6474961@anu.edu.au>
Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>
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This PR extracts the bug fixes from #587 (HumphreyYang) and applies them onto current main. The original PR could not be rebased cleanly due to extensive other changes on these files.
Summary
In
cons_smooth.mdandtax_smooth.md:np.linalg.inv(A) @ b(should be@ (R * b)).plot_cs/plot_tsfunctions referencing globalcs_model/tax_modelinstead of themodelargument — the functions would silently ignore the model parameter if called with a different model.In
cagan_ree.md:μ_seqconstruction and continuation paths.π_seq_2boundary adjustment atT1-1for regime continuity.$m_{T_1}$to match the m-plot variants).γ* = 1is assumed insolve().Original PR: #587
Co-authored-by: HumphreyYang
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