which corresponds to the period before the one-off GDP increase in 2015.9 The main implication of the calibration of large trade surplus and low net foreign assets for Ireland is that we are able to obtain a relatively low consumption-to-GDP ratio, which is in line with the Irish data.

9In 2015, Irish GDP increased by 25% due to several reasons, but the main factor was that intangible assets of several multinationals have been transferred to Ireland, and with them also the revenues pertaining to these assets. For the dynamic results reported in this paper, the exact value of the great ratios does not make a material difference, but it does help the credibility of the model.