Merge pull request #372 from jdebacker/inflation_effects

Updates to output, remove exception

README.md

@@ -55,4 +55,4 @@ Results will change as the underlying models improve. A fundamental reason for a
 
 
 ## Citing the Cost-of-Capital-Calculator Model
-Cost-of-Capital-Calculator (Version 1.2.10)[Source code], https://github.com/PSLmodels/Cost-of-Capital-Calculator
+Cost-of-Capital-Calculator (Version 1.2.11)[Source code], https://github.com/PSLmodels/Cost-of-Capital-Calculator

ccc/calcfunctions.py

@@ -46,7 +46,6 @@ def update_depr_methods(df, p, dp):
                                                 'ADS_life']
     df.loc[df['system'] == 'GDS', 'Y'] = df.loc[df['system'] == 'GDS',
                                                 'GDS_life']
-    df.to_csv('check_of_merge.csv')
     return df
 
 
@@ -159,6 +158,7 @@ def npv_tax_depr(df, r, pi, land_expensing):
     idx = df['asset_name'] == 'Inventories'
     df.loc[idx, 'z'] = 0.0  # not sure why I have to do this with changes
     z = df['z']
+
     return z
 
 
@@ -187,13 +187,6 @@ def eq_coc(delta, z, w, u, inv_tax_credit, pi, r):
     rho = (((r - pi + delta) / (1 - u)) *
            (1 - inv_tax_credit - u * z) + w - delta)
 
-    if ENFORCE_CHECKS and np.any(rho <= 0):
-        print('Error raised')
-        err = ('The cost of capital is less than or equal to zero in ' +
-               'at least one case. Please try alternative parameter ' +
-               'values to ensure a cost of capital that is positive.')
-        raise RuntimeError(err)
-
     return rho
 
 

ccc/calculator.py

@@ -206,8 +206,14 @@ def calc_by_asset(self, include_inventories=True,
             major_asset_df['major_asset_group']
         major_asset_df['asset_name'] = major_asset_df['major_asset_group']
         major_asset_df = self.calc_other(major_asset_df)
-        # Can put some if statements here if want to exclude land/inventory/etc
-        overall_df = pd.DataFrame(self.__assets.df.groupby(
+        # Drop land and inventories if conditions met
+        df1 = self.__assets.df
+        if not include_land:
+            df1.drop(df1[df1.asset_name == 'Land'].index, inplace=True)
+        if not include_inventories:
+            df1.drop(df1[df1.asset_name == 'Inventories'].index,
+                     inplace=True)
+        overall_df = pd.DataFrame(df1.groupby(
             ['tax_treat']).apply(self.__f)).reset_index()
         overall_df['major_asset_group'] = 'Overall'
         overall_df['minor_asset_group'] = 'Overall'
@@ -1761,7 +1767,7 @@ def data_year(self):
 
     def __f(self, x):
         '''
-        Private method.  A fuction to compute sums and weighted averages
+        Private method.  A function to compute sums and weighted averages
         from a groubpy object.
 
         Args:
@@ -1780,6 +1786,7 @@ def __f(self, x):
         d['z_mix'] = wavg(x, 'z_mix', 'assets')
         d['z_d'] = wavg(x, 'z_d', 'assets')
         d['z_e'] = wavg(x, 'z_e', 'assets')
+        d['Y'] = wavg(x, 'Y', 'assets')
 
         return pd.Series(d, index=['assets', 'delta', 'rho_mix', 'rho_d',
-                                   'rho_e', 'z_mix', 'z_d', 'z_e'])
+                                   'rho_e', 'z_mix', 'z_d', 'z_e', 'Y'])

ccc/paramfunctions.py

@@ -295,7 +295,8 @@ def calc_r(u, nominal_int_rate, inflation_rate, ace_int_rate, f,
     Compute firm nominal discount rates
 
     ..math::
-        r_{m,j} = f_{m,j}\[i(1-u_{j}) - \pi\] + (1-f_{m,j})E_{j} + \pi
+        r_{m,j} = f_{m,j}\[i(1-(1-i_{hc})u_{j})] + (1-f_{m,j})
+        (E_{j} + \pi - ACE_{j})
 
     Args:
         u (array_like): tax rate on business entity income
@@ -313,7 +314,7 @@ def calc_r(u, nominal_int_rate, inflation_rate, ace_int_rate, f,
     '''
     r = (
         f * (nominal_int_rate * (1 - (1 - int_haircut) * u)) + (1 - f) *
-        (E + inflation_rate - E * ace_int_rate * ace)
+        (E + inflation_rate - ace_int_rate * ace)
         )
 
     return r

ccc/tests/test_calcfunctions.py

@@ -272,14 +272,6 @@ def test_eq_coc(delta, z, w, u, inv_tax_credit, pi, r, expected_val):
     assert(np.allclose(test_val, expected_val))
 
 
-def test_eq_coc_exception1():
-    '''
-    Raise exception for non-positive cost of capital
-    '''
-    with pytest.raises(RuntimeError):
-        assert cf.eq_coc(0.05, 1.0, 0.0, 0.28, 1.0, 0.02, 0.04)
-
-
 u = np.array([0.3, 0, 0.3, 0, 0.3, 0])
 phi = np.array([0.33, 0.33, 0.33, 0.33, 0.33, 0.33])
 Y_v = np.array([8, 8, 8, 8, 8, 8])

ccc/tests/test_calculator.py

@@ -90,15 +90,21 @@ def test_calc_all():
     assert ('eatr_mix' in calc_all_df.keys())
 
 
-def test_calc_by_asset():
+@pytest.mark.parametrize('include_land,include_inventories',
+                         [(False, False), (True, True)],
+                         ids=['No land or inv', 'Both land and inv'])
+def test_calc_by_asset(include_land, include_inventories):
     '''
     Test calc_by_asset method
     '''
     assets = Assets()
     p = Specification()
     dp = DepreciationParams()
     calc = Calculator(p, dp, assets)
-    asset_df = calc.calc_by_asset()
+    asset_df = calc.calc_by_asset(
+        include_land=include_land,
+        include_inventories=include_inventories
+    )
     assert ('major_asset_group' in asset_df.keys())