HARK
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ConsIndShock model is broken for log-utility
Describe the bug
Trying to solve IndShockConsumerType
when CRRA==1
results in division-by-zero errors.
C:\GitHub\HARK\HARK\ConsumptionSaving\ConsIndShockModel.py in make_vFunc(self, solution)
1222 vNvrs = np.insert(vNvrs, 0, 0.0)
1223 vNvrsP = np.insert(
-> 1224 vNvrsP, 0, self.MPCmaxEff ** (-self.CRRA / (1.0 - self.CRRA))
1225 )
1226 MPCminNvrs = self.MPCminNow ** (-self.CRRA / (1.0 - self.CRRA))
Expected behavior Provisions should be made to use log utility when CRRA==1, so that one does not divide by 0.