Plotting model from Kline and Moretti, "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, 2014 First go to: http://mathstud.io/ Logit CDF with scale s------------------------------------- Slider(s,0,5,0.2,1) Plot(exp(x/s)/(1+exp(x/s)),x=[-10,10],y=[0,1]) Housing Market--------------------------------------------- Slider(k,0,5,0.1) Slider(Na,0,1,0.1,0.5) Slider(zA,0,2,0.1,1) Plot(zA*x^k,x=[0,2],y=[0,3]) ListPlot([Na,Na],[0,3],color="blue") ListPlot([1.5,1.5],[0,3],color="orange") ListPlot([1,1],[0,3],color="red") Equilibrium------------------------------------------------ --First enter this code into one box: @vdiff(Na,alpha,rho,Xa,Xb,taua,taub,ka,kb,za,zb,Aa,Ab) C=ln(alpha)+((1-alpha)/alpha)*ln(1-alpha) wagediff=(exp(C)/rho^((1-alpha)/alpha))*((Xa^(1/alpha)/(1-taua))-(Xb^(1/alpha)/(1-taub))) rentdiff=za*Na^(ka)-zb*(1-Na)^kb amenitydiff=Aa-Ab wagediff-rentdiff+amenitydiff --Then enter this code into another box: Slider(tauA,0,1) Slider(s,0,2,0.1,1) Slider(zA,0,2,0.1,1) Slider(Aa,0,2,0.1) Slider(kA,0,2,0.1,0.5) Slider(xA,0,2,0.1,1) Plot(vdiff(x,0.5,0.25,1,1,0,0,0.5,0.5,1,1,0,0),x=[0,1],y=[-5,5],color=green) Plot(vdiff(x,0.5,0.25,xA,1,tauA,0,kA,0.5,zA,1,Aa,0),x=[0,1],y=[-5,5],color=red) Plot(s*ln(x/(1-x)),x=[0,1],y=[-5,5],color=blue)