fix order of r_gv[t]

Author: jdebacker

ogcore/fiscal.py

@@ -107,6 +107,7 @@ def D_G_path(r, dg_fixed_values, p):
                 + agg_pension_outlays[t - 1]
                 - total_tax_revenue[t - 1]
             )
+            r_gov[t] = get_r_gov(r[t], D[t] / Y[t], p, method="scalar", t=t)
             if (t >= p.tG1) and (t < p.tG2):
                 G[t] = (
                     growth[t + 1]
@@ -128,7 +129,6 @@ def D_G_path(r, dg_fixed_values, p):
                     - TR[t]
                     - UBI_outlays[t]
                 )
-            r_gov[t] = get_r_gov(r[t], D[t] / Y[t], p, method="scalar", t=t)
             t += 1
 
         # in final period, growth rate has stabilized, so we can replace
@@ -143,6 +143,7 @@ def D_G_path(r, dg_fixed_values, p):
             + agg_pension_outlays[t - 1]
             - total_tax_revenue[t - 1]
         )
+        r_gov[t] = get_r_gov(r[t], D[t] / Y[t], p, method="scalar", t=t)
         G[t] = (
             growth[t] * (p.debt_ratio_ss * Y[t])
             - (1 + r_gov[t]) * D[t]
@@ -161,8 +162,7 @@ def D_G_path(r, dg_fixed_values, p):
             + agg_pension_outlays[t]
             - total_tax_revenue[t]
         )
-        # find r_gov for last two periods
-        r_gov[t] = get_r_gov(r[t], D[t] / Y[t], p, method="scalar", t=t)
+        # find r_gov for the period
         r_gov[t+1] = get_r_gov(r[t+1], D[t+1] / Y[t+1], p, method="scalar", t=t+1)
         D_ratio_max = np.amax(D[: p.T] / Y[: p.T])
         print("Maximum debt ratio: ", D_ratio_max)

tests/test_fiscal.py

@@ -27,7 +27,7 @@
 D_f1 = df["D_f1"].values
 D_f2 = df["D_f2"].values
 D_f3 = df["D_f3"].values
-r_gov1 = np.ones_like(df["D1"].values) * 0.03 - 0.02  # 0.02 is the default r_gov_shift parameter and the default scale parameter is 1.0, meaning r_gov1 = 0.03 - 0.02 = 0.01
+r_gov1 = np.ones_like(df["D1"].values) * 0.05 - 0.02  # 0.02 is the default r_gov_shift parameter and the default scale parameter is 1.0, meaning r_gov1 = 0.05 - 0.02 = 0.03
 r_gov2 = r_gov1
 r_gov3 = r_gov1
 nb1 = df["new_borrow1"].values
@@ -81,7 +81,7 @@ def test_D_G_path(
         "budget_balance": budget_balance,
     }
     p.update_specifications(new_param_values, raise_errors=False)
-    r = np.ones(p.T + p.S) * 0.03
+    r = np.ones(p.T + p.S) * 0.05
     p.g_n = np.ones(p.T + p.S) * 0.02
     D0_baseline = 0.59
     Gbaseline[0] = 0.05
@@ -275,7 +275,12 @@ def test_get_TR(
     ids=["Scale only", "Scale and shift", "r_gov < 0", "TPI"],
 )
 def test_get_r_gov(r, p, method, r_gov_expected):
-    r_gov = fiscal.get_r_gov(r, 0, p, method)
+    # if r is scalar
+    if method == "SS":
+        DY_ratio = 0.0
+    else:
+        DY_ratio = np.zeros_like(r)
+    r_gov = fiscal.get_r_gov(r, DY_ratio, p, method)
     assert np.allclose(r_gov, r_gov_expected)