Table 2.

Parameter estimates

ParametersEstimatesStandard errors
Capital Cobb–Douglas parameterα0.256500.0782
Labor Cobb–Douglas parameterβ0.645330.0996
CES parameter for temporary and permanent laborγ0.835710.0229
Efficiency of temporary laborλ0.194950.0110
Quit rate for permanent workersδh0.002350.0013
Firing costF5.186020.3325
Capital adjustment costa2.393280.1938
Productivity persistenceϕ0.882590.0098
Productivity growthμ0.122900.0219
Volatility of productivityσ0.283800.0403
Borrowing constraintD¯100.14.2
Measurement error, capitalσK795.252.9
Measurement error, borrowingσB389.219.4
Measurement error, permanent laborσH106.544.8
Measurement error, temporary laborσL170.522.2

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