Table B.4. Open in new tab Calibration...

(A) Endogenous parameters
1	\|$\rho$\|	Time preference rate	0.004	0.031	0.042
2	\|$g^Y$\|	Technical growth in numeraire sector	0.023	0.023	0.031
3	\|$K_0/K$\|	Initial capital stock (share of final)	0.315	0.152	0.376
4	\|$\gamma$\|	Structures’ elasticity in H	0.516	0.492	0.586
5	\|$\eta$\|	Materials’ elasticity in \|$I^X$\|	0.593	0.104	0.306
6	\|$X_0/X$\|	Initial stock of residential structures	0.280	0.145	0.429
7	\|$L^H_0/L^H$\|	Initial stock of residential land	0.586	0.547	0.386
(B) Targets
		UK	FR	DE
	Moment	Data	Model	Data	Model	Data	Model
1	\|$\frac{W}{NNP}$\|⁠, in 1950	3.9	3.9	1.8	1.8	2.0	2.0
2	\|$NNP$\|⁠, average annual	2.4	2.4	2.8	2.8	3.2	3.2
	growth rate in %
3	\|$\frac{P^H H }{NNP}$\|⁠, in 1950	1.2	1.2	0.7	0.7	0.9	0.9
4	\|$\frac{P^{LH} L^H}{P^H H} \times 100$\|⁠, long run	61.6	61.6	54.9	54.9	45.7	45.7
5	\|$\frac{N^X}{N} \times 100$\|⁠, long run	2.1	2.1	3.4	3.4	4.1	4.1
6	\|$\frac{I^H}{GDP} \times 100$\|⁠, in 1950	5.0	5.0	9.4	9.4	7.3	7.3
7	\|$\frac{X}{L^H}$\|⁠, average annual	1.2	1.2	2.4	2.4	0.5	0.5
	growth rate in %

(A) Endogenous parameters

Value

Parameter

Explanation

|$\rho$|

Time preference rate

0.004

0.031

0.042

|$g^Y$|

Technical growth in numeraire sector

0.023

0.031

|$K_0/K$|

Initial capital stock (share of final)

0.315

0.152

0.376

|$\gamma$|

Structures’ elasticity in H

0.516

0.492

0.586

|$\eta$|

Materials’ elasticity in |$I^X$|

0.593

0.104

0.306

|$X_0/X$|

Initial stock of residential structures

0.280

0.145

0.429

|$L^H_0/L^H$|

Initial stock of residential land

0.586

0.547

0.386

(B) Targets

Moment

Data

Model

Data

Model

Data

Model

|$\frac{W}{NNP}$|⁠, in 1950

3.9

1.8

2.0

|$NNP$|⁠, average annual

2.4

2.8

3.2

growth rate in %

|$\frac{P^H H }{NNP}$|⁠, in 1950

1.2

0.7

0.9

|$\frac{P^{LH} L^H}{P^H H} \times 100$|⁠, long run

61.6

54.9

45.7

|$\frac{N^X}{N} \times 100$|⁠, long run

2.1

3.4

4.1

|$\frac{I^H}{GDP} \times 100$|⁠, in 1950

5.0

9.4

7.3

|$\frac{X}{L^H}$|⁠, average annual

1.2

2.4

0.5

growth rate in %

(A) Endogenous parameters
1	\|$\rho$\|	Time preference rate	0.004	0.031	0.042
2	\|$g^Y$\|	Technical growth in numeraire sector	0.023	0.023	0.031
3	\|$K_0/K$\|	Initial capital stock (share of final)	0.315	0.152	0.376
4	\|$\gamma$\|	Structures’ elasticity in H	0.516	0.492	0.586
5	\|$\eta$\|	Materials’ elasticity in \|$I^X$\|	0.593	0.104	0.306
6	\|$X_0/X$\|	Initial stock of residential structures	0.280	0.145	0.429
7	\|$L^H_0/L^H$\|	Initial stock of residential land	0.586	0.547	0.386
(B) Targets
		UK	FR	DE
	Moment	Data	Model	Data	Model	Data	Model
1	\|$\frac{W}{NNP}$\|⁠, in 1950	3.9	3.9	1.8	1.8	2.0	2.0
2	\|$NNP$\|⁠, average annual	2.4	2.4	2.8	2.8	3.2	3.2
	growth rate in %
3	\|$\frac{P^H H }{NNP}$\|⁠, in 1950	1.2	1.2	0.7	0.7	0.9	0.9
4	\|$\frac{P^{LH} L^H}{P^H H} \times 100$\|⁠, long run	61.6	61.6	54.9	54.9	45.7	45.7
5	\|$\frac{N^X}{N} \times 100$\|⁠, long run	2.1	2.1	3.4	3.4	4.1	4.1
6	\|$\frac{I^H}{GDP} \times 100$\|⁠, in 1950	5.0	5.0	9.4	9.4	7.3	7.3
7	\|$\frac{X}{L^H}$\|⁠, average annual	1.2	1.2	2.4	2.4	0.5	0.5
	growth rate in %

Table B.4.

Open in new tab

Calibration for UK, France, and Germany.

(A) Endogenous parameters
					Value
#	Parameter	Explanation			UK	FR	DE
1	\|$\rho$\|	Time preference rate			0.004	0.031	0.042
2	\|$g^Y$\|	Technical growth in numeraire sector			0.023	0.023	0.031
3	\|$K_0/K$\|	Initial capital stock (share of final)			0.315	0.152	0.376
4	\|$\gamma$\|	Structures’ elasticity in H			0.516	0.492	0.586
5	\|$\eta$\|	Materials’ elasticity in \|$I^X$\|			0.593	0.104	0.306
6	\|$X_0/X$\|	Initial stock of residential structures			0.280	0.145	0.429
7	\|$L^H_0/L^H$\|	Initial stock of residential land			0.586	0.547	0.386
(B) Targets
		UK		FR		DE
	Moment	Data	Model	Data	Model	Data	Model
1	\|$\frac{W}{NNP}$\|⁠, in 1950	3.9	3.9	1.8	1.8	2.0	2.0
2	\|$NNP$\|⁠, average annual	2.4	2.4	2.8	2.8	3.2	3.2
	growth rate in %
3	\|$\frac{P^H H }{NNP}$\|⁠, in 1950	1.2	1.2	0.7	0.7	0.9	0.9
4	\|$\frac{P^{LH} L^H}{P^H H} \times 100$\|⁠, long run	61.6	61.6	54.9	54.9	45.7	45.7
5	\|$\frac{N^X}{N} \times 100$\|⁠, long run	2.1	2.1	3.4	3.4	4.1	4.1
6	\|$\frac{I^H}{GDP} \times 100$\|⁠, in 1950	5.0	5.0	9.4	9.4	7.3	7.3
7	\|$\frac{X}{L^H}$\|⁠, average annual	1.2	1.2	2.4	2.4	0.5	0.5
	growth rate in %

(A) Endogenous parameters
					Value
#	Parameter	Explanation			UK	FR	DE
1	\|$\rho$\|	Time preference rate			0.004	0.031	0.042
2	\|$g^Y$\|	Technical growth in numeraire sector			0.023	0.023	0.031
3	\|$K_0/K$\|	Initial capital stock (share of final)			0.315	0.152	0.376
4	\|$\gamma$\|	Structures’ elasticity in H			0.516	0.492	0.586
5	\|$\eta$\|	Materials’ elasticity in \|$I^X$\|			0.593	0.104	0.306
6	\|$X_0/X$\|	Initial stock of residential structures			0.280	0.145	0.429
7	\|$L^H_0/L^H$\|	Initial stock of residential land			0.586	0.547	0.386
(B) Targets
		UK		FR		DE
	Moment	Data	Model	Data	Model	Data	Model
1	\|$\frac{W}{NNP}$\|⁠, in 1950	3.9	3.9	1.8	1.8	2.0	2.0
2	\|$NNP$\|⁠, average annual	2.4	2.4	2.8	2.8	3.2	3.2
	growth rate in %
3	\|$\frac{P^H H }{NNP}$\|⁠, in 1950	1.2	1.2	0.7	0.7	0.9	0.9
4	\|$\frac{P^{LH} L^H}{P^H H} \times 100$\|⁠, long run	61.6	61.6	54.9	54.9	45.7	45.7
5	\|$\frac{N^X}{N} \times 100$\|⁠, long run	2.1	2.1	3.4	3.4	4.1	4.1
6	\|$\frac{I^H}{GDP} \times 100$\|⁠, in 1950	5.0	5.0	9.4	9.4	7.3	7.3
7	\|$\frac{X}{L^H}$\|⁠, average annual	1.2	1.2	2.4	2.4	0.5	0.5
	growth rate in %

Initial states, |$K_0, L^H_0, X_0$|⁠, are expressed relative to their respective final steady-state values (normalized). Data sources are described in the text.

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