
Parameter  Notation  Value 

Consumer preferences   
Intertemporal elasticity of substitution   0.90 
Intratemporal elasticity of substitution   0.80 
Production technology   
Production share of physical capital   0.30 
Elasticity of substitution for labour demand   1.50 
Depreciation rate of physical capital   0.05 (per year) 
Interest rate   0.04 (per year) 
Human capital technology   
Elasticity of time input   0.70 
Elasticity of public spending input   0.18 
Public policy   
CPP/QPP replacement rate   0.20 
RPP replacement rate   0.02–0.14 
Government expenditures/GDP   0.37 
Earned income tax rate   0.31 
Capital income tax rate   0.38 
Consumption tax rate   0.10 
