Parameters calibrated off macro data

[jdebacker]

Right now, best estimates of parameters:

Fiscal policy parameters

• alpha_G = 0.09 (this is the ratio of government spending (excluding transfers to households, interest payments on debt, and infrastructure investment) to GDP)
• alpha_T = 0.03 (this is the ratio of government transfer payments to households to GDP)
• alpha_I = 0.01 (this is the ratio of government spending on infrastructure investment to GDP)
• initial_debt_ratio = 0.90 (source)

None of these are directly from anyone source, but pieced together from the Ministry of Finance expenditure profile and this RBI report

Production function parameters

• gamma = 0.48 (Capital's share of income, source)