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
δ	0.050	Depreciation rate on physical capital	Data average
ϕ	1.500	Curvature, disutility of work	Set
σ	2.000	Curvature, utility of consumption	Set
h	0.333	Share of time spent working	Data average
$τ^{c}$	0.200	VAT/consumption tax rate	Data average
$τ^{y}$	0.100	Average tax rate on income	Data average
θ	0.740	Price stickiness parameter	Data average
$θ_{W}$	0.680	Wage stickiness parameter	Data average
ψ	5.000	Elasticity of substitution, intermediate goods	Calibrated
$ψ_{W}$	7.000	Elasticity of substitution, differentiated labor	Calibrated
$ρ_{a}$	0.701	AR(1) parameter, total factor productivity	Estimated
$σ_{a}$	0.044	st.dev, total factor productivity	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
δ	0.050	Depreciation rate on physical capital	Data average
ϕ	1.500	Curvature, disutility of work	Set
σ	2.000	Curvature, utility of consumption	Set
h	0.333	Share of time spent working	Data average
$τ^{c}$	0.200	VAT/consumption tax rate	Data average
$τ^{y}$	0.100	Average tax rate on income	Data average
θ	0.740	Price stickiness parameter	Data average
$θ_{W}$	0.680	Wage stickiness parameter	Data average
ψ	5.000	Elasticity of substitution, intermediate goods	Calibrated
$ψ_{W}$	7.000	Elasticity of substitution, differentiated labor	Calibrated
$ρ_{a}$	0.701	AR(1) parameter, total factor productivity	Estimated
$σ_{a}$	0.044	st.dev, total factor productivity	Estimated