e1104a78-dfeb-48f5-bfc6-9606f910e4f8_08rt26-delivering-public-investment-efficiently-_conefrey-lozej-o_reilly-and-walsh_.pdf_sfvrsn_52df701a_3.pdf — PaddleOCR-VL (Baidu)

TABLE 1. Calibration of households and firms

	Home	REA	US	RW
Households
Discount factor (β)	0.9975	0.9975	0.9975	0.9975
Intertemporal elasticity of substitution (σ)	1.00	1.00	1.00	1.00
Habit persistence (κ)	0.6	0.6	0.6	0.6
Capital depreciation rate (δK)	0.025	0.025	0.025	0.025
Share of non-Ricardian households (ω)	0.25	0.25	0.25	0.25
Interm.-good firms (trad. and non-trad. sectors)
Subst. btw. labour and capital	1.00	1.00	1.00	1.00
Bias towards capital - tradables (αT)	0.30	0.30	0.30	0.30
Bias towards capital - non-tradables (αN)	0.30	0.30	0.30	0.30
Production - public capital (αG)	0.05	0.05	0.05	0.05
Production - labour services (αH)	0.9	0.9	0.9	0.9
Final consumption-good firms
Subst. btw. domestic and imported trad. goods (μTC)	2.50	2.50	2.50	2.50
Bias towards domestic tradable goods (νTC)	0.30	0.47	0.63	0.71
Subst. btw. tradables and non-tradables (μC)	0.50	0.50	0.50	0.50
Bias towards tradable goods (vC)	0.80	0.45	0.35	0.35
Bilateral bias towards imported goods, Home (νMC)	-	0.24	0.12	0.64
Bilateral bias towards imported goods, REA (νMC)	0.07	-	0.10	0.83
Bilateral bias towards imported goods, US (νMC)	0.04	0.12	-	0.84
Bilateral bias towards imported goods, RW (νMC)	0.04	0.58	0.38	-
Substitution btw. consumption good imports (μIMC)	2.50	2.50	2.50	2.50
Final investment-good firms
Subst. btw. domestic and imported trad. goods (μTI)	2.50	2.50	2.50	2.50
Bias towards domestic tradable goods (νTI)	0.36	0.65	0.79	0.76
Substitution btw. tradables and non-tradables (μI)	0.50	0.50	0.50	0.50
Bias towards tradable goods (νI)	0.80	0.75	0.75	0.75
Bilateral bias towards imported goods, Home (νMI)	-	0.17	0.41	0.42
Bilateral bias towards imported goods, REA (νMI)	0.03	-	0.23	0.74
Bilateral bias towards imported goods, US (νMI)	0.05	0.15	-	0.80
Bilateral bias towards imported goods, RW (νMI)	0.01	0.50	0.49	-
Substitution btw. investment good imports (μIMI)	2.50	2.50	2.50	2.50
Reexported goods
Subst. btw. domestic and imported exports (μX)	1.50	1.50	1.50	1.50
Bias towards domestic tradable goods in exports (νX)	0.55	0.66	0.82	0.63
Bilateral bias towards imported goods, Home (νMX)	-	0.23	0.20	0.57
Bilateral bias towards imported goods, REA (νMX)	0.07	-	0.13	0.80
Bilateral bias towards imported goods, US (νMX)	0.05	0.13	-	0.82
Bilateral bias towards imported goods, RW (νMX)	0.03	0.56	0.41	-
Substitution btw. goods in import bundle (μMX)	2.50	2.50	2.50	2.50

Note: REA=Rest of euro area; US=United States; RW=Rest of world