Minor but important change to ‘MarketClearanceEqn’ conditions that are used to check for market clearance when solving for general equilibrium.

MarketClearanceEqns should now be written to evaluate to zero when market clears, rather than evaluating to the implied price (which was then compared internally to the actual price by the codes). This was needed, eg., to allow for Huggett (1993) where market clearance is that savings and borrowing are in zero net supply, and for models where a balanced government fiscal balance is a ‘market clearance’ condition.

The examples and replications have been updated. For example, in the case of the model of Aiyagari (1994) the old way was to set MarketClearanceEqn to be the ‘marginal product of capital’, which was then compared internally to the ‘interest rate’. The new way is to set the MarketClearanceEqn to be ‘interest rate minus the marginal product of capital’, which is then compared to zero. So only one line (line 116) of the Aiyagari (1994) example code changes.

This change is accompanied by a replication of Huggett (1993) to show off the advantage of the new way of treating the market clearance equations.