Table 2 Fixed parameters Parameter... | Emerald Publishing

Table 2

Fixed parameters

Parameter	Description	Value	Target
$\bar{π}$	Steady-state inflation	1.02^0.25	2% inflation steady state
$β$	Discount factor	0.99	Standard value
$υ$	Inverse Frisch elasticity of labor supply	3.00	Standard value
$γ$	Consumption habit	0.80	Standard value
$θ$	Elasticity of substitution	10.0	Standard value
$χ$	Degree of indexation	0.00	Cogley et al. (2009)
$μ$	Weight on lagged inflation	1.00	Cogley et al. (2009)
G/Y	Government expenditure share	0.22	Sample mean

Parameter	Description	Value	Target
$\bar{π}$	Steady-state inflation	1.02^0.25	2% inflation steady state
$β$	Discount factor	0.99	Standard value
$υ$	Inverse Frisch elasticity of labor supply	3.00	Standard value
$γ$	Consumption habit	0.80	Standard value
$θ$	Elasticity of substitution	10.0	Standard value
$χ$	Degree of indexation	0.00	Cogley et al. (2009)
$μ$	Weight on lagged inflation	1.00	Cogley et al. (2009)
G/Y	Government expenditure share	0.22	Sample mean

Source(s): Ha et al. (2020)