Table 1 Model parameters Parameter Value... | Emerald Publishing

Table 1

Model parameters

Parameter	Value	Description	Method
β	0.982	Discount factor	Calibrated
α	0.429	Capital share	Data average
$1 - α$	0.571	Labor share	Calibrated
γ	0.873	Relative weight attached to leisure	Calibrated
δ	0.013	Depreciation rate on physical capital	Data average
$τ^{y}$	0.100	Average tax rate on income	Data average
$τ^{c}$	0.200	VAT/consumption tax rate	Data average
ω	0.600	Proportion of Ricardian households	Set
$ρ_{a}$	0.701	AR(1) persistence coefficient, TFP process	Estimated
$σ_{a}$	0.044	st. error, TFP process	Estimated

Parameter	Value	Description	Method
β	0.982	Discount factor	Calibrated
α	0.429	Capital share	Data average
$1 - α$	0.571	Labor share	Calibrated
γ	0.873	Relative weight attached to leisure	Calibrated
δ	0.013	Depreciation rate on physical capital	Data average
$τ^{y}$	0.100	Average tax rate on income	Data average
$τ^{c}$	0.200	VAT/consumption tax rate	Data average
ω	0.600	Proportion of Ricardian households	Set
$ρ_{a}$	0.701	AR(1) persistence coefficient, TFP process	Estimated
$σ_{a}$	0.044	st. error, TFP process	Estimated