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Add leakage parameter for government infrastructure investment#1094

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MahadevBalla wants to merge 1 commit intoPSLmodels:masterfrom
MahadevBalla:feat/1086-gov-infra-leakage
Open

Add leakage parameter for government infrastructure investment#1094
MahadevBalla wants to merge 1 commit intoPSLmodels:masterfrom
MahadevBalla:feat/1086-gov-infra-leakage

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@MahadevBalla
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Closes #1086

Summary

  • Add new parameter infra_investment_leakage_rate to default_parameters.json
  • Apply leakage to public capital accumulation in fiscal.get_K_g()
  • Update the get_K_g() docstring to reflect the new law of motion
  • Add tests for the no-leakage baseline and a positive-leakage SS case

Testing

  • pytest tests/test_fiscal.py
  • pytest tests/test_fiscal.py -k "get_K_g"

Output / Validation

pytest tests/test_fiscal.py -k "get_K_g"
3 passed, 23 deselected in 4.38s

pytest tests/test_fiscal.py
26 passed in 8.77s

ogcore/fiscal.py Outdated
K_g (array_like): stock of public capital

"""
phi = p.infra_investment_leakage_rate
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Let's call this phi_g as in the doctoring.

@jdebacker
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@MahadevBalla Thanks for the PR!

I left one comment above. In addition, please run make format from the top level directory to format the .py files.

I would be good to update the theory docs in .docs/book/content/theory to reflect this new parameter. But we can do that in another PR if that's a problem.

I will try to complete and merge PR #1097 soon -- once those changes are in this branch, the test failures we're seeing here should be resolved.

@MahadevBalla MahadevBalla force-pushed the feat/1086-gov-infra-leakage branch from d9344ad to 8504836 Compare April 2, 2026 16:51
@MahadevBalla
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Thanks for the review @jdebacker! I’ve made the phi_g change and run make format.
I won’t be able to work on the theory docs update until Sunday, but I can follow up with that separately after that.

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Add a "leakage" parameter for gov't infrastructure spending

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