IO Balance function

.history/pymrio/tools/iobalance_20231013091727.py

@@ -0,0 +1,280 @@
+""""
+
+Title: Code for the Is_balanced function 
+
+Desc: Write a function in Pyrmio that checks if system is balanced 
+for different MRIOs.
+
+Author: Mohamed Badr
+Data: October 2023
+
+"""
+
+#%%
+#import packages
+
+import pymrio
+import pandas as pd
+from pathlib import Path
+
+#%%
+
+#import EXIOBASE
+#exiobase
+exio_path = '..\EXIOBASE\IOT_2021_pxp.zip' 
+exio3 = pymrio.parse_exiobase3(path=exio_path)
+exio3.calc_all()
+
+#%%
+
+#Define EXIO variables
+
+Z = exio3.Z
+VA = exio3.impacts.F.loc['Value Added']
+Y = exio3.Y
+X = exio3.x
+
+
+#%%
+
+def system_is_balanced(Inter_industry: pd.DataFrame, value_added: pd.DataFrame, final_demand: pd.DataFrame, total_output:pd.DataFrame):
+    """
+    Checks if the entire system is balanced by:
+
+    1) First checks the shapes and makes sure they are correct
+    2) Then checks if the system is balanced
+    3) The checks if sector by sector is balanced
+
+    Args:
+        Inter_industry (pd.DataFrame): InterIndustry exchange matrix
+        value_added (pd.DataFrame): Value Added vector
+        final_demand (pd.DataFrame): Final demand
+        total_output (pd.DataFrame): Total Output Vector
+    """
+
+    #Error message for wrong matrix shape  
+    class MatrixNotCompatibleError(Exception):
+        def __init__(self, message="Matrix/Vector shape is not compatible with InterIndustry Matrix"):
+            self.message = message
+            super().__init__(self.message)
+
+    #error message for unbalanced system
+    class SystemNotBalancedError(Exception):
+        def __init__(self, message="The system is not Balanced (Sum of system Inputs does not equal sum of Outputs)"):
+            self.message = message
+            super().__init__(self.message)            
+
+
+    #error message for unbalanced sectors
+    class SectorsNotBalancedError(Exception):
+        def __init__(self, message="Sectors are not balanced (Sum of sector Inputs does not equal sum of Outputs)"):
+            self.message = message
+            super().__init__(self.message)  
+
+    #error message for incorrect total output
+    class TotalOutputError(Exception):
+        def __init__(self, message="Total Output does not Equal sum of inter-industry and final demand outputs"):
+            self.message = message
+            super().__init__(self.message)              
+
+
+    # Check shape of Inter industry is square
+
+    if isinstance(Inter_industry, pd.DataFrame):
+        num_rows_Z, num_cols_Z = Inter_industry.shape
+        if num_rows_Z == num_cols_Z:
+            pass
+        else:
+            raise NotSquareDataFrameError("Number of rows does not equal columns")
+    else:
+        pass
+
+    #Check shape of other matrices
+
+    #Value Added
+    if isinstance(value_added, pd.DataFrame):
+        num_rows_VA, num_cols_VA = value_added.shape
+        if num_cols_VA == num_cols_Z:
+            pass
+        else:
+            raise MatrixNotCompatibleError("Value Added shape is not compatible with InterIndustry Matrix")
+    else:
+        pass    
+
+    #Check Final Demand
+    if isinstance(final_demand, pd.DataFrame):
+        num_rows_Y, num_cols_Y = final_demand.shape
+        if num_rows_Y == num_rows_Z:
+            pass
+        else:
+            raise MatrixNotCompatibleError("Final Demand shape is not compatible with InterIndustry Matrix")
+    else:
+        pass    
+
+
+    #Check Total Output
+    if isinstance(total_output, pd.DataFrame):
+        num_rows_X, num_cols_X = total_output.shape
+        if num_rows_X == num_rows_Z:
+            pass
+        else:
+            raise MatrixNotCompatibleError("Total Output shape is not compatible with InterIndustry Matrix")
+    else:
+        pass
+
+    print("Matrices Shapes are compatible")
+
+
+    #check if total Output is the sum of Industry and final demand outputs
+    for i in range(len(Inter_industry)):
+
+
+        Inter_industry_sum = Inter_industry.iloc[i].sum()
+        Final_demand_sum = final_demand.iloc[i].sum() 
+        total= Inter_industry_sum+Final_demand_sum
+
+
+        if round(total) == round(float(total_output.iloc[i])):
+            pass
+        else:
+            raise TotalOutputError('Total output does not equal sum of intermediate and final demand consumption')
+
+    #check if system totals are balanced by summing total output and value added + InterIndustry
+
+    X_sum = total_output.sum(axis=0) #Total Output sum
+    Z_sum_vertical = Inter_industry.sum(axis=0).sum() #Input Matrix sum (vertical sum of InterIndustry)
+    VA_sum = value_added.sum(axis=0).sum() #Value Added sum
+
+    Input = Z_sum_vertical + VA_sum
+    Output = X_sum 
+
+    #round to the nearest thousands decimal
+    if (Input/Output < 1.01).all() and (Input/Output > 0.99).all():
+        pass
+    else:
+        raise SystemNotBalancedError('The IO System is not Balanced: Sum of Inputs does not Equal sum of outputs')
+
+    print('IO System is Balanced: Total Inputs equal Total Outputs')
+
+
+    #check if each sector in each region is balanced
+    for i in range(len(Inter_industry)):    
+
+        #first check if the value added is multi-dimensional         
+        if value_added.ndim> 1:
+            #if yes then sum vertically and return a single dimensional array
+            value_added =value_added.sum(axis=0)
+
+        else:
+            pass
+
+        sector_Input_sum = float(Inter_industry.iloc[:, i].sum()) + float(value_added.iloc[i].sum(axis=0))
+        sector_output_sum = float(total_output.iloc[i])
+
+        if int(sector_output_sum) == int(sector_Input_sum):
+            pass
+
+        elif round(sector_output_sum) == round(sector_Input_sum):
+            pass
+
+        #Here I allow for a 1% difference between sector Inputs and sector outputs
+        elif sector_Input_sum/sector_output_sum < 1.01 and sector_Input_sum/sector_output_sum > 0.99:
+            pass
+
+        else:
+            print('Sector at column', i, 'is not balanced. The sum of the inputs is',sector_Input_sum,'While the sum of the outputs is',sector_output_sum ) 
+            raise SectorsNotBalancedError('Sectors are not balanced: Sum of Sector Inputs does not Equal Sum of sector output')
+
+    print('All Sectors are Balanced ±1 %')
+
+    #if all matrices are the correct shape, total input equal total output, and sector inputs equal sector outputs
+    # It returns "True"
+    return True    
+
+
+
+
+
+system_is_balanced(Z,VA,Y,X)    
+
+#%%
+
+ty =Y.iloc[500].sum()
+tz = Z.iloc[500].sum()
+to = X.iloc[500]
+
+to
+# %%
+#Load WIOD 
+WIOD = pd.read_excel('../WIOD2013/WIOT_excel/WIOT2007_Nov16_ROW.xlsb',  index_col =[0,1,2,3], header = [3,4,5])
+
+#%%
+#Define some WIOD variables
+
+WIOD_Y = WIOD.iloc[0:2464, 2464:2684] #final demand
+WIOD_X = WIOD.iloc[0:2464, 2684:2685] #total output
+WIOD_Z = WIOD.iloc[0:2464, 0:2464] #Interindustry
+
+#Sum of Total inputs
+WIOD_tot_inputs = WIOD.iloc[2471:2472, 0:2464]
+
+#Value Added 
+WIOD_VA = WIOD.iloc[2465:2471, 0:2464].sum(axis=0)
+#%%
+
+#Try on WIOD 
+system_is_balanced(WIOD_Z,WIOD_VA,WIOD_Y,WIOD_X)    
+# %%
+
+
+######
+#Test on Artificial data
+#####
+
+
+Z_data = [
+    [1, 2, 1],
+    [2, 1, 1],
+    [1, 1, 2]
+]
+
+
+Y_data =  [
+    [0.5,0.5],
+    [0.5,0.5],
+    [0.5,0.5]
+]
+
+
+VA_data = [
+    [0.5,0.5,0.5],
+    [0.5,0.5,0.5],
+    [0,0,0]
+]
+
+X_data =  [
+    [5],
+    [5],
+    [5]
+]
+
+
+balanced_Z = pd.DataFrame(Z_data, index = ['Sector1','Sector2','Sector3'],
+    columns= ['Sector1','Sector2','Sector3'],dtype=float) 
+
+balanced_Y = pd.DataFrame(Y_data, index = ['Sector1','Sector2','Sector3'],columns= ['Final Demand_1','Final_Demand_2'],dtype=float)
+
+balanced_VA = pd.DataFrame(VA_data, index = ['Value Added_1','Value Added_2','Value Added_2'],columns= ['Sector1','Sector2','Sector3'],dtype=float)
+
+balanced_X = pd.DataFrame(X_data, index = ['Sector1','Sector2','Sector3'],columns= ['Total Output'],dtype=float)
+
+
+
+system_is_balanced(balanced_Z,balanced_VA,balanced_Y,balanced_X)
+
+
+
+# %%
+
+
+# %%