α | 0.3 | Exponent agriculture land in production function | Jointly determined to replicate late transition phase as reported in Hosonuma et al. 2012 |
|
β | 0.7 | Exponent agriculture land in production function |
|
pa | 1.3 | Output price agriculture |
|
pf | 1 | Output price forestry |
|
γ | 0.25 | Exponent of state the state of the environment in externality function | Value selected to replicate forest cover along the different phases of forest transition as reported in Hosonuma et al. 2012 |
|
Cmax | 1 | Maximum carbon stock (Normalized) | The values could not be derived from the literature directly. Nevertheless they are consistent with what can be found there |
|
\bar L | 1 | Land endowment (Normalized) |
|
\bar T | 1 | Labor endowment (Normalized) |
|
k | 0.25 | Inflection point of Hill function | Assumption consistent with mathematical formulation |
|
n | 1 | Steepness Hill functions | Assumption consistent with mathematical formulation |
|
Random Parameters |
|
s | N(0.5, 0.083) | Carbon share | Assumption consistent with mathematical formulation* |
|
α | U(0.1 – 0.85) | Elasticity of substitution | Assumption consistent with mathematical formulation |
d | U(0.1 – 0.5) | Degradation | Specht et al 2015 and Gerwing 2002 |