Parameter Calculation Functions¶
paramfunctions
ccc.paramfunctions¶

ccc.paramfunctions.
calc_g
(g_scg, g_lcg, g_xcg, omega_scg, omega_lcg, omega_xcg, m, E_c)[source]¶ Calculate the aftertax, annualized, real rate of return on all capital gains
 ..math::
 g = omega_{scg}times g_{scg} + omega_{lcg}times g_{lcg} +
omega_{xcg}times mE
 Parameters
g_scg (scalar) – the real, aftertax annualized return on short term capital gains
g_lcg (scalar) – the real, aftertax annualized return on long term capital gains
g_xcg (scalar) – the real, aftertax annualized return on capital gains held until death
omega_scg (scalar) – the fraction of capital gains that are shortterm
omega_lcg (scalar) – the fraction of capital gains that are longterm
omega_xcg (scalar) – the fraction of capital gains that are held until death
m (scalar) – share of equity return retained by the firm and reinvested
E_c (scalar) – expected, aftertax return on corporate equity
 Returns
 the aftertax, annualized, real rate of return on
all capital gains
 Return type
g (scalar)

ccc.paramfunctions.
calc_g__g
(Y_g, tau_cg, m, E_c, pi)[source]¶ Calculate the real, aftertax annualized return on short or long term capital gains
 ..math::
 g_{icg} = frac{1}{Y_{icg}}lnbiggl[(1tau_{icg})e^{(pi+mE)
Y_{icg}}+tau_{icg}biggr] + pi
 Parameters
Y_g (scalar) – number of years asset held before gains realized
tau_cg (scalar) – tax rate on capital gains income
m (scalar) – share of equity return retained by the firm and reinvested
E_c (scalar) – expected, aftertax return on corporate equity
pi (scalar) – inflation rate
 Returns
 real, aftertax annualized return on capital
gains
 Return type
g__g (scalar)

ccc.paramfunctions.
calc_s
(p)[source]¶ Compute the aftertax rate of return to savers, s.
\[s = ...\] Parameters
p (CCC Specification Object) – model parameters
 Returns
 return to savers and required return to passthrough
entities:
 s_dict (dict): dictionary of s for investments in
corporate and passthrough businesses and by type of financing
 E_nc (scalar): required pretax return on passthrough
investments
 Return type
(tuple)

ccc.paramfunctions.
calc_s__d
(s_d_td, alpha_d_ft, alpha_d_td, alpha_d_nt, tau_int, tau_w, i, pi)[source]¶ Compute the aftertax return to debt investments.
 ..math::
 s_{j,d} = alpha_{j,d,ft}((1tau_{int})i  pi) +
alpha_{j,d,td}s_{j,d,td} + alpha_{j,d,nt}(ipi)  tau_{w}
 Parameters
s_d_td (scalar) – aftertax return on debt investments made through taxdeferred acounts
alpha_d_ft (scalar) – fraction of debt investments held in fulltax accounts
alpha_d_td (scalar) – fraction of debt investments held in taxdeferred acounts
alpha_d_nt (scalar) – fraction of debt investments held in taxfree accounts
tau_int (scalar) – marginal tax rate on interest income
tau_w (scalar) – marginal tax rate on wealth
i (scalar) – nominal interest rate
pi (scalar) – inflation rate
 Returns
aftertax return on debt investments
 Return type
s__d (scalar)

ccc.paramfunctions.
calc_s_c_d_td
(sprime_c_td, gamma, i, pi)[source]¶ Compute the aftertax return on corprate debt investments made through taxdeferred accounts.
 ..math::
s_{c,d,td} = gamma(ipi) + (1gamma)s^{‘}_{c,td}
 Parameters
sprime_c_td (scalar) – the aftertax return on corporate investments made through taxdeferred accounts
gamma (scalar) – Fraction of debt owned through wholelife insurance policies
i (scalar) – the nominal interest rate
pi (scalar) – the inflation rate
 Returns
 the aftertax return on corprate debt
investments made through taxdeferred accounts
 Return type
s_c_d_td (scalar)

ccc.paramfunctions.
calc_s_c_e
(s_c_e_ft, s_c_e_td, alpha_c_e_ft, alpha_c_e_td, alpha_c_e_nt, tau_w, E_c)[source]¶ Calculate the aftertax return on investments in corporate equity
 ..math::
 s_{c,e} = alpha_{c,e,ft}times s_{c,e,ft} + alpha_{c,e,td}
times s_{c,e,td} + alpha_{c,e,nt}times E  tau_{w}
 Parameters
s_c_e_ft (scalar) – aftertax return on investments in corporate equity in fullytaxable accounts
s_c_e_td (scalar) – aftertax return on investments in corporate equity in taxdeferred accounts
alpha_c_e_ft (scalar) – fraction of corporate equity investments made through fulltaxable accounts
alpha_c_e_td (scalar) – fraction of corporate equity investments made through taxdeferred accounts
alpha_c_e_nt (scalar) – fraction of corporate equity investments made through taxexempt accounts
tau_w (scalar) – marginal tax rate on wealth
E_c (scalar) – expected, aftertax return on corporate equity
 Returns
 the aftertax return on investments in
corporate equity
 Return type
s_c_e (scalar)

ccc.paramfunctions.
calc_s_c_e_td
(Y_td, tau_td, i, pi, E_c)[source]¶ Calculate the aftertax return on investmentes in corporate equity in taxdeferred accounts.
 ..math::
 s_{c,e,td} = frac{1}{Y_{td}}ln((1tau_{td})e^{(pi+E)Y_{td}}
+tau_{td})  pi
 Parameters
Y_td (scalar) – years investments are held in taxdeferred accounts
tau_td (scalar) – marginal tax rate on investments in taxdeferred accounts
i (scalar) – nominal interest rate
pi (scalar) – inflation rate
E_c (scalar) – expected, aftertax return on corporate equity
 Returns
 the aftertax return on investmentes in
corporate equity in taxdeferred accounts.
 Return type
s_c_e_td (scalar)

ccc.paramfunctions.
calc_sprime_c_td
(Y_td, tau_td, i, pi)[source]¶ Compute aftertax rate of return on savings invested in taxdeferred accounts.
\[s^{'}_{c,td} = \frac{1}{Y_{td}}log((1\tau_{td})*e^{i*Y_{td}}+ \tau_{td})  \pi\] Parameters
Y_td (scalar) – number of years savings held in taxdeferred retirement account
tau_td (scalar) – effective marginal tax rate on investment income from taxdeferred accounts
i (scalar) – the nominal interest rate
pi (scalar) – the inflation rate
 Returns
 the aftertax return on corporate
investments made through taxdeferred accounts
 Return type
sprime_c_td (scalar)