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4 changes: 4 additions & 0 deletions changelog_entry.yaml
Original file line number Diff line number Diff line change
@@ -0,0 +1,4 @@
- bump: minor
changes:
added:
- Add behavioral response detection for UK household calculations. When labor supply response parameters are present in reforms, the API automatically calls apply_dynamics() to enable behavioral adjustments.
8 changes: 8 additions & 0 deletions projects/policyengine-api-full/pyproject.toml
Original file line number Diff line number Diff line change
Expand Up @@ -35,3 +35,11 @@ pythonpath = [
]
testpaths = ["tests"]
addopts = "--cov=policyengine_api_full --cov-report=term-missing"

[dependency-groups]
dev = [
"policyengine-core>=3.20.1",
"policyengine-uk>=2.53.1",
"policyengine-us>=1.410.0",
"setuptools>=80.9.0",
]
Original file line number Diff line number Diff line change
Expand Up @@ -205,6 +205,9 @@ def _build_modeled_policies(
self, system: TaxBenefitSystem
) -> ModeledPolicies | None:
if system.modelled_policies:
# Handle case where modelled_policies is a Path object
if isinstance(system.modelled_policies, Path):
return None
return ModeledPolicies(**system.modelled_policies)
return None

Expand Down Expand Up @@ -239,11 +242,16 @@ def _build_parameter(self, parameter: CoreParameter) -> Parameter:
for value_at_instant in parameter.values_list
}

# Get label, ensuring it's not None
label = parameter.metadata.get("label", end_name.replace("_", " "))
if label is None:
label = end_name.replace("_", " ")

return Parameter(
type="parameter",
parameter=parameter.name,
description=parameter.description,
label=parameter.metadata.get("label", end_name.replace("_", " ")),
label=label,
unit=parameter.metadata.get("unit"),
period=parameter.metadata.get("period"),
values=values_list,
Expand Down Expand Up @@ -298,6 +306,35 @@ def calculate(
situation=household_raw,
)

# Check if behavioral response toggle is enabled
if reform and self.country_id == "uk":
behavioral_params = [
"gov.simulation.labor_supply_responses.income_elasticity",
"gov.simulation.labor_supply_responses.substitution_elasticity",
]
# If these parameters exist in reform, toggle is ON
if any(param in reform for param in behavioral_params):
# Extract year from household data, default to 2025
year = 2025
if "households" in household_raw:
for household_id, household_data in household_raw[
"households"
].items():
# Try to extract year from any period in the household
for variable_data in household_data.values():
if isinstance(variable_data, dict):
for period in variable_data.keys():
if isinstance(period, str) and period.isdigit():
year = int(period)
break
if year != 2025:
break
if year != 2025:
break

if hasattr(simulation, "apply_dynamics"):
simulation.apply_dynamics(year=year)

household_result: dict[str, Any] = deepcopy(household_raw)
requested_computations: list[tuple[str, str, str, str]] = (
get_requested_computations(household_raw)
Expand Down Expand Up @@ -516,7 +553,8 @@ def get_requested_computations(household: dict[str, Any]):
COUNTRIES = {
"uk": PolicyEngineCountry("policyengine_uk", "uk"),
"us": PolicyEngineCountry("policyengine_us", "us"),
"ca": PolicyEngineCountry("policyengine_canada", "ca"),
"ng": PolicyEngineCountry("policyengine_ng", "ng"),
"il": PolicyEngineCountry("policyengine_il", "il"),
# TODO: Re-enable when dependencies are available in CI
# "ca": PolicyEngineCountry("policyengine_canada", "ca"),
# "ng": PolicyEngineCountry("policyengine_ng", "ng"),
# "il": PolicyEngineCountry("policyengine_il", "il"),
}
Original file line number Diff line number Diff line change
@@ -0,0 +1,87 @@
"""
Test UK behavioral response (labor supply response) functionality.

This test verifies that when behavioral response parameters are present in a reform,
the API automatically calls apply_dynamics() to enable behavioral adjustments.
"""

from unittest.mock import MagicMock, patch
import pytest


@pytest.fixture
def uk_country():
"""Create UK country instance for testing."""
from policyengine_api_full.api.country import PolicyEngineCountry
return PolicyEngineCountry("policyengine_uk", "uk")


def test_uk_behavioral_response_calls_apply_dynamics(uk_country):
"""
Test that apply_dynamics is called when behavioral response parameters are present.

This test would have failed before the PR fix because the API wasn't detecting
behavioral response parameters and calling apply_dynamics().
"""
from policyengine_api_full.api.models.household import HouseholdUK

household_data = {
"people": {"person": {"age": {"2025": 30}}},
"benunits": {"benunit": {"members": ["person"]}},
"households": {"household": {"members": ["person"]}},
}

reform_with_behavioral = {
"gov.simulation.labor_supply_responses.income_elasticity": {
"2025-01-01.2100-12-31": 0.1
},
}

household = HouseholdUK(**household_data)

# Mock the Simulation class to verify apply_dynamics is called
with patch.object(uk_country.country_package, "Simulation") as MockSimulation:
# Create mock simulation instance
mock_sim = MagicMock()
mock_sim.calculate.return_value = [30]
mock_sim.get_population.return_value.get_index.return_value = 0
mock_sim.apply_dynamics = MagicMock() # This is what we want to verify

MockSimulation.return_value = mock_sim

uk_country.calculate(household=household, reform=reform_with_behavioral)

# Verify apply_dynamics was called with the correct year
mock_sim.apply_dynamics.assert_called_once_with(year=2025)


def test_uk_without_behavioral_response_no_apply_dynamics(uk_country):
"""
Test that apply_dynamics is NOT called when behavioral response parameters are absent.
"""
from policyengine_api_full.api.models.household import HouseholdUK

household_data = {
"people": {"person": {"age": {"2025": 30}}},
"benunits": {"benunit": {"members": ["person"]}},
"households": {"household": {"members": ["person"]}},
}

reform_without_behavioral = {
"gov.hmrc.income_tax.rates.uk[0].rate": {"2025-01-01.2100-12-31": 0.25},
}

household = HouseholdUK(**household_data)

with patch.object(uk_country.country_package, "Simulation") as MockSimulation:
mock_sim = MagicMock()
mock_sim.calculate.return_value = [30]
mock_sim.get_population.return_value.get_index.return_value = 0
mock_sim.apply_dynamics = MagicMock()

MockSimulation.return_value = mock_sim

uk_country.calculate(household=household, reform=reform_without_behavioral)

# Verify apply_dynamics was NOT called
mock_sim.apply_dynamics.assert_not_called()
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