Hi everyone
I have working on a code which would allow me to look the optimal level of taxes the goverment could apply, so I have created both demand and supply functions and I have used fmincon but I do not know how can set Government tax= T*Q.
Should I create another function?
This is what I have so far:
function [x, fval, expected_return] = effportfolio(fun, Sigma, mu, mu_p_0, initial_guess, optimisation_options)
%EFFPORTFOLIO solves for the efficient portfolio
%optimisation_options
if nargin<6
optimisation_options=[];
end
%% constraints
Aeq = [mu' ; ones(1,length(mu))];
beq = [mu_p_0;1];
%% Minimisation
if strcmp(fun, 'quadprog')
[x, fval] = quadprog(Sigma, [], [], [], Aeq, beq) ;
else
[x, fval] = fmincon(@effportobj, initial_guess, [], [], Aeq, beq, [], [], [], optimisation_options, Sigma) ;
end
expected_return = x'*mu;
end
function z = effportobj(x, Sigma)
z = x'*Sigma*x;
end
function fun = myfun2
fun{1} = @(P) 1*Q+10+T;
fun{2} = @(P) -3*Q+90;
end
Thank you very much
