Research Article
Constructing a Small-Region DSGE Model
Table 1
Parameter settings.
| | Notation | Description | Value |
| | Consumption share | 0.56 | | gvmt-ex share | 0.2 | | Capital share | 1/3 | | Discount rate | 0.99 | | Capital depreciation rate | 0.025 | | Adjustment cost | 1.79 | | Utility function | 1.49 | | NKPC | 0.037 | | Bond share | 0.25 | | Net export share | ā0.1 | | Tax elasticity | 0.9 | | Local gvt-ex elasticity | 0.9 | | Central gvt-ex elasticity | 0.9 | | Import elasticity | 0.1 or 0.3 | | Import elasticity | 0.1 or 0.3 | | Import elasticity | 0.1 or 0.3 | | Import elasticity | 0.1 or 0.3 | | Monetary policy rule | 1.5 | | Closing parameter | 0.01 |
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