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7 changes: 7 additions & 0 deletions docs/book/content/intro/parameters.md
Original file line number Diff line number Diff line change
Expand Up @@ -433,6 +433,13 @@ _Valid Range:_ min = 0.0 and max = 0.3
_Out-of-Range Action:_ error


#### `infra_investment_leakage_rate`
_Description:_ Fraction of government infrastructure investment lost to leakage (e.g., corruption or other frictions) and treated as deadweight loss. Only $(1 - \phi_g)$ of investment enters the public capital stock.
_Value Type:_ float
_Valid Range:_ min = 0.0 and max = 1.0
_Out-of-Range Action:_ error


#### `alpha_bs_T`
_Description:_ Proportional adjustment to government transfers relative to baseline amount when budget balance is true. Set value for base year, click '+' to add value for next year. All future years not specified are set to last value entered.
_Value Type:_ float
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4 changes: 2 additions & 2 deletions docs/book/content/theory/government.md
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Expand Up @@ -651,10 +651,10 @@ Note that the budget closure rule (described in Section ref{`SecUnbalGBCcloseRul

```{math}
:label: EqUnbalGBC_Kgmt
K_{g,m,t+1} = (1 - \delta_g) K_{g,m,t} + I_{g,m,t} \quad\forall m,t
K_{g,m,t+1} = (1 - \delta_g) K_{g,m,t} + (1 - \phi_g) I_{g,m,t} \quad\forall m,t
```

where $\delta_g$ is the depreciation rate on infrastructure. The stock of public capital in each industry $m$ complements labor and private capital in the production function of the representative firm, in Equation {eq}`EqFirmsCESprodfun`.
where $\delta_g$ is the depreciation rate on infrastructure and $\phi_g$ (`infra_investment_leakage_rate`) is the fraction of infrastructure investment lost to leakage (e.g., corruption or other frictions). The stock of public capital in each industry $m$ complements labor and private capital in the production function of the representative firm, in Equation {eq}`EqFirmsCESprodfun`.

Aggregate spending on UBI at time $t$ is the sum of UBI payments across all households at time $t$:

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2 changes: 1 addition & 1 deletion docs/book/content/theory/stationarization.md
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Expand Up @@ -261,7 +261,7 @@ The usual definition of equilibrium would be allocations and prices such that ho

```{math}
:label: EqStnrz_Kgmt
\hat{K}_{g,m,t+1} = \frac{(1 - \delta_g)\hat{K}_{g,m,t} + \hat{I}_{g,m,t}}{e^{g_y}(1 + \tilde{g}_{n,t+1})} \quad\forall m,t
\hat{K}_{g,m,t+1} = \frac{(1 - \delta_g)\hat{K}_{g,m,t} + (1 - \phi_g)\hat{I}_{g,m,t}}{e^{g_y}(1 + \tilde{g}_{n,t+1})} \quad\forall m,t
```

Stationary aggregate universal basic income expenditure is found in one of two ways depending on how the individual UBI payments $ubi_{j,s,t}$ are modeled. In Section {ref}`SecUBI` of Chapter {ref}`Chap_UnbalGBC`, we discuss how UBI payments to households $ubi_{j,s,t}$ can be growth adjusted so that they grow over time at the rate of productivity growth or non-growth adjusted such that they are constant overtime. In the first case, when UBI benefits are growth adjusted and growing over time, the stationary aggregate government UBI payout $\hat{UBI}_t$ is found by dividing {eq}`EqUnbalGBC_UBI` by $e^{g_y t}\tilde{N}_t$. In the second case, when UBI benefits are constant over time and not growing with productivity, the stationary aggregate government UBI payout $\hat{UBI}_t$ is found by dividing {eq}`EqUnbalGBC_UBI` by only $\tilde{N}_t$.
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