A Sustainable Economic System to Face the Fluctuation of Fruit Prices: Based on a Small-Region DSGE Model

Table 3

The definitions and initial distributions of the dynamic parameters.

Dynamic parameters		Initial distributions
Parameter	Definition	Distribution	Prior mean	Standard variance	Posterior mean
	Reciprocal of intertemporal consumption elasticity of substitution	Normal	1	0.263	1.374
	Nonfruit consumption rate	Normal	0.8	0.1	0.743
	Investment adjustment coefficient	Normal	3.5	1	4.0
	Price adjustment probability	Beta	0.5	0.1	0.79
	Wage adjustment probability	Beta	0.5	0.1	0.81
	Steady-state inflation weight	Beta	0.5	0.1	0.47
	Central bank reaction coefficient	Beta	0.5	0.1	0.25
		Gamma	2.5	1	1.07
		Gamma	2.5	1	2.83
		Gamma	1.5	0.5	2.77
	Consumption preference shock	Beta	0.5	0.1	0.703
	Investment adjustment shock	Beta	0.5	0.1	0.552
	Wage plus shock	Beta	0.5	0.1	0.676
	Price plus shock	Beta	0.5	0.1	0.600
	Technology shock	Beta	0.5	0.1	0.582
	Fruit price shock	Beta	0.5	0.1	0.537
	Monetary policy shock	Beta	0.5	0.1	0.662
	Consumption preference shock	Inv.gamma	0.1	10	0.127
	Investment adjustment shock	Inv.gamma	0.1	0.002	0.179
	Wage plus shock	Inv.gamma	0.1	0.002	0.194
	Price plus shock	Inv.gamma	0.1	0.002	0.180
	Technology shock	Inv.gamma	0.1	0.002	0.203
	Fruit price shock	Inv.gamma	0.1	0.002	0.382
	Monetary policy shock	Inv.gamma	0.1	0.002	0.443