Table 1 Calibrated parameter values... | Emerald Publishing

Table 1

Calibrated parameter values

Parameter	Value	Source/Target value
Frisch elasticity of labor supply	ω_T = ω_N = ω_CM = 1.455	Mendoza (1991)
Relative Risk aversion	σ = 2	Mendoza (1991)
Elasticity of substitution	φ = 0.5	Akinci (2011)
Depreciation rate	δ = 0.025	10% per year
Capital share ratio	α^T = α^CM = 0.35	Na (2015)
Capital share ratio	α^N = 0.25	Uribe (1997)
Commodity input share	γ^T = 0.05	Commodity inputs = 5%
Consumption basket parameter	χ = 0.35	Share of non-tradable output = 40%
Interest rate parameter	v^d = 0.004	Small value Schmitt-Grohé and Uribe (2003)
Interest rate parameter	v^C = −0.019	Estimated OLS coefficient
AR coefficient of Commodity price	$ρ_{1}^{C M} = 1.363$	Estimated SVAR(2) process
AR coefficient of Commodity price	$ρ_{2}^{C M} = - 0.49$	Estimated SVAR(2) process

Parameter	Value	Source/Target value
Frisch elasticity of labor supply	ω_T = ω_N = ω_CM = 1.455	Mendoza (1991)
Relative Risk aversion	σ = 2	Mendoza (1991)
Elasticity of substitution	φ = 0.5	Akinci (2011)
Depreciation rate	δ = 0.025	10% per year
Capital share ratio	α^T = α^CM = 0.35	Na (2015)
Capital share ratio	α^N = 0.25	Uribe (1997)
Commodity input share	γ^T = 0.05	Commodity inputs = 5%
Consumption basket parameter	χ = 0.35	Share of non-tradable output = 40%
Interest rate parameter	v^d = 0.004	Small value Schmitt-Grohé and Uribe (2003)
Interest rate parameter	v^C = −0.019	Estimated OLS coefficient
AR coefficient of Commodity price	$ρ_{1}^{C M} = 1.363$	Estimated SVAR(2) process
AR coefficient of Commodity price	$ρ_{2}^{C M} = - 0.49$	Estimated SVAR(2) process

Note(s): The parameters were calibrated with values from the related literature concerning emerging economies

Source(s): Prepared by the authors