Table 1: Parameter settings.

NotationDescriptionValue

Consumption share0.56
gvmt-ex share0.2
Capital share1/3
Discount rate0.99
Capital depreciation rate0.025
Adjustment cost1.79
Utility function1.49
NKPC0.037
Bond share0.25
Net export share−0.1
Tax elasticity0.9
Local gvt-ex elasticity0.9
Central gvt-ex elasticity0.9
Import elasticity0.1 or 0.3
Import elasticity0.1 or 0.3
Import elasticity0.1 or 0.3
Import elasticity0.1 or 0.3
Monetary policy rule1.5
Closing parameter0.01