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13 changes: 7 additions & 6 deletions lectures/uncertainty_traps.md
Original file line number Diff line number Diff line change
Expand Up @@ -278,15 +278,15 @@ class UncertaintyTrapEcon:
"""
self.θ = self.ρ * self.θ + self.σ_θ * w

def gen_aggregates(self):
def gen_aggregates(self, rng):
"""
Generate aggregates based on current beliefs (μ, γ). This
is a simulation step that depends on the draws for F.
"""
F_vals = self.σ_F * np.random.randn(self.num_firms)
F_vals = self.σ_F * rng.standard_normal(self.num_firms)
M = np.sum(self.ψ(F_vals) > 0) # Counts number of active firms
if M > 0:
x_vals = self.θ + self.σ_x * np.random.randn(M)
x_vals = self.θ + self.σ_x * rng.standard_normal(M)
X = x_vals.mean()
else:
X = 0
Expand Down Expand Up @@ -444,10 +444,11 @@ M_vec = np.empty(sim_length)
γ_vec[0] = econ.γ
θ_vec[0] = 0

w_shocks = np.random.randn(sim_length)
rng = np.random.default_rng()
w_shocks = rng.standard_normal(sim_length)

for t in range(sim_length-1):
X, M = econ.gen_aggregates()
X, M = econ.gen_aggregates(rng)
X_vec[t] = X
M_vec[t] = M

Expand All @@ -459,7 +460,7 @@ for t in range(sim_length-1):
θ_vec[t+1] = econ.θ

# Record final values of aggregates
X, M = econ.gen_aggregates()
X, M = econ.gen_aggregates(rng)
X_vec[-1] = X
M_vec[-1] = M
```
Expand Down
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