Households | ||
Share or Ricardian households | 1 – μ | 0.6 |
Discount factor | 0.99 | |
Risk aversion | 2 | |
Habits in consumption | 0.85 | |
Home bias | 0.56; 0.03 | |
Production | ||
Depreciation rate | 0.025 | |
Private capital share | 0.4 | |
Public capital share | 0.015 | |
Adjustment cost parameter | 2.48 | |
Labor market | ||
Separation rate (private; public sector) | 0.06; 0.03 | |
Matching elasticity (private; public sector) | 0.5; 0.3 | |
Bargaining power | 0.5 | |
Price and wage stickiness | ||
Calvo parameter (prices) | 0.75 | |
Calvo parameter (existing wages) | 0.8 | |
Calvo parameter (new wages) | 0.7 | |
Market power (mark-up) | 6 | |
Fiscal policy | ||
Smoothing parameters | 0 – 0.1 | |
Persistence parameters | 0 – 0.85 | |
Stances | Φj | 0 – 0.1 |
Monetary policy | ||
Interest rate smoothing | 0.9 | |
Stance on inflation | Φπ | 1.5 |
Stance on output gap | Φy | 0.5 |
Trade in international bonds | ||
Risk premium parameter | 0.01 |
Germany | 0,2427 | Slovakia | 0,0160 |
France | 0,1962 | Ireland | 0,0142 |
Italy | 0,1773 | Lithuania | 0,0082 |
Spain | 0,1368 | Slovenia | 0,0061 |
Netherlands | 0,0504 | Latvia | 0,0057 |
Belgium | 0,0334 | Estonia | 0,0039 |
Greece | 0,0315 | Cyprus | 0,0025 |
Portugal | 0,0302 | Luxembourg | 0,0018 |
Austria | 0,0259 | Malta | 0,0014 |
Finland | 0,0162 |