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2a8276b | 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 | function [v, pall, vall, Lall, thetaall] = solveh_new(s, Winterp, p)
ns = size(s, 1);
vall = zeros(ns, 2);
Lall = zeros(ns, 2);
thetaall = zeros(ns, 2);
for branch = 1 : 1 : 2
if branch == 1 % Refinance mortgage
thetaall(:, branch) = p.thetam*ones(ns, 1);
Lall(:, branch) = s(:,1) - (1 + p.rmgrid(s(:,3))).*p.Pgrid(s(:,3)).*s(:, 2)*p.hbar + thetaall(:, branch).*p.Pgrid(p.nr)*p.hbar - p.F;
vall(:, branch) = Winterp(Lall(:, branch), thetaall(:, branch), p.nr*ones(ns, 1)) - p.chi;
elseif branch == 2 % Stay inactive
mbar = p.rmgrid(s(:, 3))./(1 - (1 + p.rmgrid(s(:, 3))).^(-p.D))*p.thetam;
thetaall(:, branch) = max((1 + p.rmgrid(s(:,3))).*s(:,2) - mbar, 0);
Lall(:, branch) = s(:,1) - (1 + p.rmgrid(s(:,3))).*p.Pgrid(s(:,3)).*s(:, 2)*p.hbar + thetaall(:, branch).*p.Pgrid(s(:,3)).*p.hbar;
vall(:, branch) = Winterp(Lall(:, branch), thetaall(:, branch), s(:,3));
end
end
pb = (1 - exp(-p.nu*max(vall(:,1) - vall(:,2), 0))).*(vall(:,1) >= vall(:,2));
v = vall(:,2).*(vall(:,1) < vall(:,2)) + (vall(:,1) - pb/p.nu).*(vall(:,1) >= vall(:,2));
pall = [pb, 1 - pb];
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