Merge pull request #810 from jdebacker/tax_inv

Merging

docs/book/content/theory/equilibrium.md

@@ -112,7 +112,7 @@ The computational algorithm for solving for the steady-state follows the steps b
     13. Using the law of motion of the stock of infrastructure, {eq}`EqStnrz_Kgmt`, and $\bar{I}_{g}$, solve for $\bar{K}_{g}^{i}$
     14. Find output and factor demands for M-1 industries:
         1.  By {eq}`EqMarkClrGoods_Mm1`, $\bar{Y}_{m}=\bar{C}_{m}$
-        2.  The capital-output ratio can be determined from the FOC for the firms' choice of capital: $\frac{\bar{K}_m}{\bar{Y}_m} = \frac{\bar{r} + \bar{\delta}_{M} -\bar{\delta}^{\tau}\bar{\tau}^{corp}_{m}}{\bar{p}_m(1-\bar{\tau}^{corp}_{m})\bar{Z}_m^{\frac{\varepsilon_m -1}{\varepsilon_m}}}^{-\varepsilon_m} \gamma_{m}$
+        2.  The capital-output ratio can be determined from the FOC for the firms' choice of capital: $\frac{\bar{K}_m}{\bar{Y}_m} = \gamma_m\left[\frac{\bar{r} +\bar{\delta}_M - \bar{\tau}^{corp}_m\bar{\delta}^{\tau}_m - \bar{\tau}^{inv}_m}{\left(1 - \bar{\tau}^{corp}_m\right)\bar{p}_m(\bar{Z}_m)^\frac{\varepsilon_m-1}{\varepsilon_m}}\right]^{-\varepsilon_m}$
         3.  Capital demand can thus be found: $\bar{K}_{m} = \frac{\bar{K}_m}{\bar{Y}_m} * \bar{Y}_m$
         4.  Labor demand can be found by inverting the production function:
            ```{math}
@@ -123,7 +123,7 @@ The computational algorithm for solving for the steady-state follows the steps b
 
            ```{math}
            :label: EqSS_MPKg
-             \bar{K}_m^{r^*} = \bar{L}_m\left(\frac{\bar{w}}{\frac{\bar{r} + \bar{\delta}_M - \bar{\tau}^b_m\bar{\delta}^{\tau}_m}{1 - \bar{\tau}_m^b}}\right)^{\varepsilon_m} \frac{\gamma_m}{(1 - \gamma_m - \gamma_{g,m})}
+             \bar{K}_m^{r^*} = \bar{L}_m\left(\frac{\bar{w}}{\frac{\bar{r} + \bar{\delta}_M - \bar{\tau}^{corp}_m\bar{\delta}^{\tau}_m - \bar{\tau}^{inv}_m}{1 - \bar{\tau}^{corp}_m}}\right)^{\varepsilon_m} \frac{\gamma_m}{(1 - \gamma_m - \gamma_{g,m})}
            ```
 
     16. Determine factor demands and output for industry $M$:
@@ -134,8 +134,8 @@ The computational algorithm for solving for the steady-state follows the steps b
             2.  Using $\bar{D}^{d,i}$ we can then find domestic investors' holdings of private capital as the residual from their total asset holdings: , $\bar{K}^{d,i} = \bar{B}^i - \bar{D}^{d,i}$
             3.  Aggregate capital supply is then determined as $\bar{K}^{i'} = \bar{K}^{d,i} + \bar{K}^{f,i}$.
         4.  $\bar{K}_M = \bar{K}^{i'} - \sum_{m=1}^{M-1}\bar{K}_{m}$
-        5.  Use the factor demands and $\bar{K}_g$ in the production function for industry $M$ to find $\bar{Y}_M
-    17. Find an updated value for GDP, $\bar{Y}^{i'} = \sum_{m=1}^{M} \bar{p}_m \bar{Y}_m
+        5.  Use the factor demands and $\bar{K}_g$ in the production function for industry $M$ to find $\bar{Y}_M$.
+    17. Find an updated value for GDP, $\bar{Y}^{i'} = \sum_{m=1}^{M} \bar{p}_m \bar{Y}_m$.
     18. Find a updated values for $\bar{I}_{g}$ and $\bar{K}_g$ using  $\bar{Y}^{i'}$, equations {eq}`EqStnrz_Igt` and {eq}`EqStnrz_Kgmt`
 3. Given updated inner-loop values based on initial guesses for outer-loop variables $\{\bar{r}_p^i, \bar{r}^i, \bar{w}^i, \boldsymbol{\bar{p}}, \overline{BQ}^i, \overline{TR}^i, factor^i\}$, solve for updated values of outer-loop variables $\{\bar{r}_p^{i'}, \bar{r}^{i'}, \bar{w}^{i'}, \boldsymbol{\bar{p}}^{i'}, \overline{BQ}^{i'}, \overline{TR}^{i'}, factor^{i'}\}$ using the remaining equations:
 
@@ -339,7 +339,7 @@ The stationary non-steady state (transition path) solution algorithm has followi
 16. Using the law of motion of the stock of infrastructure, {eq}`EqStnrz_Kgmt`, and $\hat{I}_{g,t}$, solve for $\hat{K}_{g,t}^{i}$
 17. Find output and factor demands for M-1 industries:
     1. By {eq}`EqMarkClrGoods_Mm1`, $\hat{Y}_{m,t}=\hat{C}_{m,t}$
-    2. The capital-output ratio can be determined from the FOC for the firms' choice of capital: $\frac{\hat{K}_{m,t}}{\hat{Y}_{m,t}} = \frac{r_t + \delta_{M,t} -\delta_t^{\tau}\tau^{corp}_{m,t}}{p_{m,t}(1-\tau^{corp}_{m,t}){Z}_{m,t}^{\frac{\varepsilon_m -1}{\varepsilon_m}}}^{-\varepsilon_m} \gamma_{m}$
+    2. The capital-output ratio can be determined from the FOC for the firms' choice of capital: $\frac{\hat{K}_{m,t}}{\hat{Y}_{m,t}} = \gamma_m\left[\frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^{\tau}_{m,t} - \tau^{inv}_{m,t}}{(1-\tau^{corp}_{m,t})p_{m,t}({Z}_{m,t})^\frac{\varepsilon_m -1}{\varepsilon_m}}\right]^{-\varepsilon_m}$
     3. Capital demand can thus be found: $\hat{K}_{m,t} = \frac{\hat{K}_{m,t}}{\hat{Y}_{m,t}} * \hat{Y}_{m,t}$
     4. Labor demand can be found by inverting the production function:
       ```{math}
@@ -349,7 +349,7 @@ The stationary non-steady state (transition path) solution algorithm has followi
     5\. Use the interest rate $r_t^*$ and labor demand $\hat{L}_{m,t}$ to solve for private capital demand at the world interest rate $\hat{K}_{m,t}^{r^*}$ using {eq}`EqFirmsMPKg_opt`
       ```{math}
       :label: EqTP_MPKg
-        \hat{K}_{m,t}^{r^*} = \hat{L}_{m,t}\left(\frac{\hat{w}_t}{\frac{r_t + \delta_{M,t} - \tau^b_{m,t}\delta^{\tau}_{m,t}}{1 - \bar{\tau}_{m,t}^b}}\right)^{\varepsilon_m} \frac{\gamma_m}{(1 - \gamma_m - \gamma_{g,m})}
+        \hat{K}_{m,t}^{r^*} = \hat{L}_{m,t}\left(\frac{\hat{w}_t}{\frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^{\tau}_{m,t} - \tau^{inv}_{m,t}}{1 - \bar{\tau}_{m,t}^b}}\right)^{\varepsilon_m} \frac{\gamma_m}{(1 - \gamma_m - \gamma_{g,m})}
       ```
 
 18.  Determine factor demands and output for industry $M$:

docs/book/content/theory/firms.md

@@ -34,14 +34,14 @@ Industry $M$ in the model is unique in two respects.  First, we will define indu
   ```{math}
   :label: EqFirmsProfit
     PR_{m,t} &= (1 - \tau^{corp}_{m,t})\Bigl[p_{m,t}F(K_{m,t},K_{g,m,t},L_{m,t}) - w_t L_{m,t}\Bigr] - \\
-    &\qquad\qquad\quad \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} K_{m,t} \quad\forall m,t
+    &\qquad\qquad\quad \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t}K_{m,t} + \tau^{inv}_{m,t}I_{m,t} \quad\forall m,t
   ```
 
   Gross income for the firms is $p_{m,t}F(K_{m,t},K_{g,m,t},L_{m,t})$. Labor costs to the firm are $w_t L_{m,t}$, and capital costs are $(r_t +\delta_{M,t})K_{m,t}$. The government supplies public capital $K_{g,m,t}$ to the firms at no cost. The per-period interest rate (rental rate) of capital for firms is $r_t$. The per-period economic depreciation rate for private capital is $\delta_{M,t}\in[0,1]$.[^delta_M] The $\delta^\tau_{m,t}$ parameter in the last term of the profit function governs how much of capital depreciation can be deducted from the corporate income tax.
 
   Taxes enter the firm's profit function {eq}`EqFirmsProfit` in two places. The first is the corporate income tax rate $\tau^{corp}_{m,t}$, which is a flat tax on corporate income that can vary by industry $m$. Corporate income is defined as gross income minus labor costs. This will cause the corporate tax to only have a direct effect on the firms' capital demand decision.
 
-  The tax policy also enters the profit function {eq}`EqFirmsProfit` through depreciation deductions at rate $\delta^\tau_{m,t}$, which then lower corporate tax liability. When $\delta^\tau_{m,t}=0$, no depreciation expense is deducted from the firm's tax liability. When $\delta^\tau_{m,t}=\delta_{M,t}$, all economic depreciation is deducted from corporate income.
+  The tax policy also enters the profit function {eq}`EqFirmsProfit` through depreciation deductions at rate $\delta^\tau_{m,t}$, which then lower corporate tax liability. When $\delta^\tau_{m,t}=0$, no depreciation expense is deducted from the firm's tax liability. When $\delta^\tau_{m,t}=\delta_{M,t}$, all economic depreciation is deducted from corporate income. The investment tax credit is characterized by the parameter $\tau^{inv}_{m,t}$ multiplied by $I_{m,t}$ investment by industry $m$, which represents the percent of industry-specific capital that can be credited against profits.
 
   Firms take as given prices $p_{m,t}$, $w_t$, and $r_t$ and the level of public capital supply $K_{g,m,t}$. Taking the derivative of the profit function {eq}`EqFirmsProfit` with respect to labor $L_{m,t}$ and setting it equal to zero (using the general CES form of the production function {eq}`EqFirmsCESprodfun`) and taking the derivative of the profit function with respect to private capital $K_{m,t}$ and setting it equal to zero, respectively, characterizes the optimal labor and capital demands.
 
@@ -52,7 +52,7 @@ Industry $M$ in the model is unique in two respects.  First, we will define indu
 
   ```{math}
   :label: EqFirmFOC_K
-    r_t = (1 - \tau^{corp}_{m,t})p_{m,t}(Z_{m,t})^\frac{\varepsilon_m-1}{\varepsilon_m}\left[\gamma_m\frac{Y_{m,t}}{K_{m,t}}\right]^\frac{1}{\varepsilon_m} - \delta_{M,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} \quad\forall m,t
+    r_t = (1 - \tau^{corp}_{m,t})p_{m,t}(Z_{m,t})^\frac{\varepsilon_m-1}{\varepsilon_m}\left[\gamma_m\frac{Y_{m,t}}{K_{m,t}}\right]^\frac{1}{\varepsilon_m} - \delta_{M,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} + \tau^{inv}_{m,t} \quad\forall m,t
   ```
 
   Note that the presence of the public capital good creates economic rents. These rents will accrue to the owners of capital via the financial intermediary. See Section Chapter {ref}`Chap_FinInt` for more details on the determination of the return to the household's portfolio. Because public capital is exogenous to the firm's decisions, the optimality condition for capital demand {eq}`EqFirmFOC_K` is only affected by public capital $K_{g,m,t}$ through the $Y_{m,t}$ term.
@@ -71,7 +71,7 @@ Industry $M$ in the model is unique in two respects.  First, we will define indu
 
   ```{math}
   :label: EqFirmsMPK_opt
-    MPK_{m,t} =  \frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^\tau_{m,t}}{p_{m,t}(1 - \tau^{corp}_{m,t})} \quad\forall m,t
+    MPK_{m,t} =  \frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^\tau_{m,t} - \tau^{inv}_{m,t}}{p_{m,t}(1 - \tau^{corp}_{m,t})} \quad\forall m,t
   ```
 
   Firm profit maximization for labor demand from equation {eq}`EqFirmFOC_L` implies that the marginal product of labor is equal to the real wage rate:
@@ -93,9 +93,9 @@ Industry $M$ in the model is unique in two respects.  First, we will define indu
   ```{math}
   :label: EqFirmsProfit_Kg
     \begin{split}
-      PR_{m,t} &= (1 - \tau^{corp}_{m,t})\Bigl[p_{m,t}Y_{m,t} - w_t L_{m,t}\Bigr] - \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} K_{m,t} \\
-      &= (1 - \tau^{corp}_{m,t})\Biggl[\biggl(\frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^{\tau}_{m,t}}{1 - \tau^{corp}_{m,t}}\biggr)K_{m,t} + p_{m,t}MPK_{g,m,t}K_{g,m,t} + w_t L_{m,t}\Biggr] ... \\
-      &\quad\quad - (1 - \tau^{corp}_{m,t})w_t L_{m,t} - (r_t + \delta_{M,t})K_{m,t} + \tau^{corp}_{m,t}\delta^{\tau}_{m,t} K_{m,t} \\
+      PR_{m,t} &= (1 - \tau^{corp}_{m,t})\Bigl[p_{m,t}Y_{m,t} - w_t L_{m,t}\Bigr] - \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t}K_{m,t} + \tau^{inv}_{m,t}I_{m,t} \\
+      &= (1 - \tau^{corp}_{m,t})\Biggl[\biggl(\frac{r_t + \delta_{M,t} - \tau^{corp}_{m,t}\delta^{\tau}_{m,t} - \tau^{inv}_{m,t}}{1 - \tau^{corp}_{m,t}}\biggr)K_{m,t} + p_{m,t}MPK_{g,m,t}K_{g,m,t} + w_t L_{m,t}\Biggr] ... \\
+      &\quad\quad - (1 - \tau^{corp}_{m,t})w_t L_{m,t} - (r_t + \delta_{M,t})K_{m,t} + \tau^{corp}_{m,t}\delta^{\tau}_{m,t}K_{m,t} + \tau^{inv}_{m,t}I_{m,t} \\
       &= (1 - \tau^{corp}_{m,t})p_{m,t}MPK_{g,m,t}K_{g,m,t} \quad\forall m,t
     \end{split}
   ```

docs/book/content/theory/government.md

@@ -384,14 +384,14 @@ Businesses face a linear tax rate $\tau^{b}_{m,t}$, which can vary by industry a
   ```{math}
   :label: EqFirmsProfit2
     PR_{m,t} &= (1 - \tau^{corp}_{m,t})\Bigl[p_{m,t}F(K_{m,t},K_{g,m,t},L_{m,t}) - w_t L_{m,t}\Bigr] - \\
-    &\quad\quad\quad\quad\quad \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} K_{m,t} \quad\forall m,t
+    &\quad\quad\quad\quad\quad \bigl(r_t + \delta_{M,t}\bigr)K_{m,t} + \left(\tau^{corp}_{m,t}\delta^\tau_{m,t} + \tau^{inv}_{m,t}\right)K_{m,t} \quad\forall m,t
   ```
 
   We define total government revenue from taxes in terms of the numeraire good as the following,
 
   ```{math}
   :label: EqUnbalGBCgovRev
-    Rev_t &= \underbrace{\sum_{m=1}^M\Bigl[\tau^{corp}_{m,t}\bigl(p_{m,t}Y_{m,t} - w_t L_t\bigr) - \tau^{corp}_{m,t}\delta^\tau_{m,t}K_{m,t}\Bigr]}_{\text{corporate tax revenue}} \\
+    Rev_t &= \underbrace{\sum_{m=1}^M\Bigl[\tau^{corp}_{m,t}\bigl(p_{m,t}Y_{m,t} - w_t L_t\bigr) - \tau^{corp}_{m,t}\delta^\tau_{m,t}K_{m,t} - \tau^{inv}_{m,t}I_{m,t}\Bigr]}_{\text{corporate tax revenue}} \\
     &\quad + \underbrace{\sum_{s=E+1}^{E+S}\sum_{j=1}^J\lambda_j\omega_{s,t}\tau^{etr}_{s,t}\left(x_{j,s,t},y_{j,s,t}\right)\bigl(x_{j,s,t} + y_{j,s,t}\bigr)}_{\text{household tax revenue}} \quad\forall t
   ```
 

docs/book/content/theory/stationarization.md

@@ -133,7 +133,7 @@ The usual definition of equilibrium would be allocations and prices such that ho
   ```{math}
   :label: EqStnrzProfit
     \hat{PR}_{m,t} &= (1 - \tau^{corp}_{m,t})\Bigl[F(\hat{K}_{m,t},\hat{K}_{g,m,t},\hat{L}_{m,t}) - \hat{w}_t \hat{L}_{m,t}\Bigr] - ... \\
-    &\qquad\qquad\quad \bigl(r_t + \delta_{M,t}\bigr)\hat{K}_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} \hat{K}_{m,t} \quad\forall m,t
+    &\qquad\qquad\quad \bigl(r_t + \delta_{M,t}\bigr)\hat{K}_{m,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t}\hat{K}_{m,t} + \tau^{inv}_{m,t}\hat{I}_{m,t} \quad\forall m,t
   ```
 
   The firms' first order equation for labor demand {eq}`EqFirmFOC_L` is stationarized by dividing both sides by $e^{g_y t}$. This stationarizes the wage $\hat{w}_t$ on the left-hand-side and cancels out the $e^{g_y t}$ term in front of the right-hand-side. To complete the stationarization, we multiply and divide the $\frac{Y_{m,t}}{e^{g_y t}L_{m,t}}$ term on the right-hand-side by $\tilde{N}_t$.
@@ -147,7 +147,7 @@ The usual definition of equilibrium would be allocations and prices such that ho
 
   ```{math}
   :label: EqStnrzFOC_K
-    r_t = (1 - \tau^{corp}_{m,t})p_{m,t}(Z_{m,t})^\frac{\varepsilon_m-1}{\varepsilon_m}\left[\gamma_m\frac{\hat{Y}_{m,t}}{\hat{K}_{m,t}}\right]^\frac{1}{\varepsilon_m} - \delta_{M,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} \quad\forall m,t
+    r_t = (1 - \tau^{corp}_{m,t})p_{m,t}(Z_{m,t})^\frac{\varepsilon_m-1}{\varepsilon_m}\left[\gamma_m\frac{\hat{Y}_{m,t}}{\hat{K}_{m,t}}\right]^\frac{1}{\varepsilon_m} - \delta_{M,t} + \tau^{corp}_{m,t}\delta^\tau_{m,t} + \tau^{inv}_{m,t} \quad\forall m,t
   ```
 
   A stationary version of the firms' gross revenue attributed to each factor of production {eq}`EqFirmsMargRevEq` is found by dividing both sides of the equation by $e^{g_y t}\tilde{N}_t$.
@@ -205,7 +205,7 @@ The usual definition of equilibrium would be allocations and prices such that ho
   We can stationarize the expression for total government revenue $Rev_t$ in {eq}`EqUnbalGBCgovRev` by dividing both sides of the equation by $e^{g_y t}\tilde{N}_t$.
   ```{math}
   :label: EqStnrzGovRev
-    \hat{Rev}_t &= \underbrace{\sum_{m=1}^M\Bigl[\tau^{corp}_{m,t}\bigl(p_{m,t}\hat{Y}_{m,t} - \hat{w}_t\hat{L}_t\bigr) - \tau^{corp}_{m,t}\delta^\tau_{m,t}\hat{K}_{m,t}\Bigr]}_{\text{corporate tax revenue}} \\
+    \hat{Rev}_t &= \underbrace{\sum_{m=1}^M\Bigl[\tau^{corp}_{m,t}\bigl(p_{m,t}\hat{Y}_{m,t} - \hat{w}_t\hat{L}_t\bigr) - \tau^{corp}_{m,t}\delta^\tau_{m,t}\hat{K}_{m,t} - \tau^{inv}_{m,t}\hat{I}_{m,t}\Bigr]}_{\text{corporate tax revenue}} \\
     &\qquad + \underbrace{\sum_{s=E+1}^{E+S}\sum_{j=1}^J\lambda_j\hat{\omega}_{s,t}\tau^{etr}_{s,t}\left(\hat{x}_{j,s,t},\hat{y}_{j,s,t}\right)\bigl(\hat{x}_{j,s,t} + \hat{y}_{j,s,t}\bigr)}_{\text{household tax revenue}} \quad\forall t
   ```
 

ogcore/SS.py

@@ -1152,42 +1152,45 @@ def run_SS(p, client=None):
         # Use the baseline solution to get starting values for the reform
         baseline_ss_dir = os.path.join(p.baseline_dir, "SS", "SS_vars.pkl")
         ss_solutions = utils.safe_read_pickle(baseline_ss_dir)
-        # use baseline solution as starting values if dimensions match
-        try:
-            if ss_solutions["bssmat_splus1"].shape == (
-                p.S,
-                p.J,
-            ) and ss_solutions["Y_vec_ss"].shape == (p.M):
-                print("Using previous solutions for SS")
-                (
-                    b_guess,
-                    n_guess,
-                    r_p_guess,
-                    rguess,
-                    wguess,
-                    p_m_guess,
-                    BQguess,
-                    TRguess,
-                    Yguess,
-                    factor,
-                ) = (
-                    ss_solutions["bssmat_splus1"],
-                    ss_solutions["nssmat"],
-                    float(ss_solutions["r_p_ss"]),
-                    float(ss_solutions["rss"]),
-                    float(ss_solutions["wss"]),
-                    ss_solutions[
-                        "p_m_ss"
-                    ],  # Not sure why need to index p_m,but otherwise its shape is off..
-                    ss_solutions["BQss"],
-                    float(ss_solutions["TR_ss"]),
-                    float(ss_solutions["Yss"]),
-                    ss_solutions["factor_ss"],
-                )
-                use_new_guesses = False
-            else:
+        if p.reform_use_baseline_solution:
+            # use baseline solution as starting values if dimensions match
+            try:
+                if ss_solutions["bssmat_splus1"].shape == (
+                    p.S,
+                    p.J,
+                ) and ss_solutions["Y_vec_ss"].shape == (p.M):
+                    print("Using previous solutions for SS")
+                    (
+                        b_guess,
+                        n_guess,
+                        r_p_guess,
+                        rguess,
+                        wguess,
+                        p_m_guess,
+                        BQguess,
+                        TRguess,
+                        Yguess,
+                        factor,
+                    ) = (
+                        ss_solutions["bssmat_splus1"],
+                        ss_solutions["nssmat"],
+                        float(ss_solutions["r_p_ss"]),
+                        float(ss_solutions["rss"]),
+                        float(ss_solutions["wss"]),
+                        ss_solutions[
+                            "p_m_ss"
+                        ],  # Not sure why need to index p_m,but otherwise its shape is off..
+                        ss_solutions["BQss"],
+                        float(ss_solutions["TR_ss"]),
+                        float(ss_solutions["Yss"]),
+                        ss_solutions["factor_ss"],
+                    )
+                    use_new_guesses = False
+                else:
+                    use_new_guesses = True
+            except KeyError:
                 use_new_guesses = True
-        except KeyError:
+        else:
             use_new_guesses = True
         if use_new_guesses:
             if p.use_zeta: