FirmsDecideCreditDemand#

class bamengine.events.credit_market.FirmsDecideCreditDemand[source]#

Bases: Event

Firms calculate credit demand based on funding shortfall.

Firms need to pay their wage bill but may lack sufficient funds (net worth). Credit demand is the shortfall between wage obligations and available funds.

Algorithm

For each firm i:

\[B_i = \max(W_i - A_i, 0)\]

where:

\(B_i\): credit demand (amount firm needs to borrow)
\(W_i\): wage bill (total wages owed to workers)
\(A_i\): total funds (firm’s current cash balance)

Firms with \(A_i \geq W_i\) have zero credit demand (self-financed).

Mathematical Notation

\[B_i = \max(0, W_i - A_i)\]

Examples

Execute this event:

>>> import bamengine as be
>>> sim = be.Simulation.init(n_firms=100, seed=42)
>>> event = sim.get_event("firms_decide_credit_demand")
>>> event.execute(sim)

Check total credit demand:

>>> sim.bor.credit_demand.sum()
1250.0

Find firms needing credit:

>>> import numpy as np
>>> needs_credit = sim.bor.credit_demand > 0
>>> needs_credit.sum()
45

Verify credit demand formula:

>>> shortfall = np.maximum(sim.bor.wage_bill - sim.bor.total_funds, 0)
>>> np.allclose(sim.bor.credit_demand, shortfall)
True

Notes

This event must execute after FirmsCalcWageBill (need wage_bill) and before FirmsPrepareLoanApplications.

Firms with negative net worth may have very high credit demand (potentially exceeding available credit supply).

Credit demand is zero for self-financed firms (net_worth >= wage_bill).

See also

FirmsCalcWageBill: Calculates wage_bill used in credit demand
FirmsCalcFinancialFragility: Uses credit_demand to calculate leverage
FirmsPrepareLoanApplications: Firms with credit_demand > 0 apply for loans
bamengine.events._internal.credit_market.firms_decide_credit_demand: Implementation

execute(sim)[source]#

Execute the event’s logic.

Mutates simulation state in-place. This method must be implemented by all Event subclasses.

Parameters:: sim (Simulation) – The simulation instance containing all state and configuration.
Returns:: All mutations are in-place.
Return type:: None

Examples

Implement execute in a custom event:

>>> from bamengine import event, ops
>>>
>>> @event
... class CustomPricingEvent:
...     def execute(self, sim):
...         prod = sim.get_role("Producer")
...         # Apply 10% markup to all prices
...         new_prices = ops.multiply(prod.price, 1.1)
...         ops.assign(prod.price, new_prices)

Access configuration and RNG:

>>> @event
... class StochasticEvent:
...     def execute(self, sim):
...         shock = sim.config.h_rho
...         random_values = sim.rng.uniform(0, shock, size=sim.n_firms)
...         # Use random_values in calculations

Notes

The execute method receives full Simulation access, including: - All roles: sim.get_role(“RoleName”) or sim.prod, sim.wrk, etc. - Configuration: sim.config - RNG: sim.rng - Economy state: sim.ec

__init__()#

name = 'firms_decide_credit_demand'#

FirmsDecideCreditDemand#

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