|
| Calibration | Meaning | Calibration value | Basis for taking values |
|
| Savings-based household discount factor | 0.988 | Iacoviello and Neri [15] |
| Loan-based household discount factor | 0.95 | Wang and Hou [26] |
| Elasticity of substitution between labor inputs in each sector | 1 |
| Quarterly depreciation rate of real estate | 0.8% |
| Capital depreciation rate (quarterly) | 2.5% | Xu and Liu [33] |
| The inverse of the real wage elasticity of labor | 1 | Bernanke et al. [10], Peng and Fang [39] |
| Mortgage ratio | 0.7 | According to the current lending policy in China, the downpayment ratio for the first suite is usually 30% |
| Elasticity of output with respect to capital for the real estate firms | 0.5 | Iacoviello and Neri [15] |
| Elasticity of output of the consumer goods sector with respect to capital | 0.5 |
| Price elasticity of demand for housing | 6 | Iacoviello [11] |
| Inflation under the interest rate rule | 0.15 | Hou and Gong [18] |
| Output gap under the interest rate rule | 1.5 |
| Real estate price response coefficient under the interest rate rule | 1.5 |
| Interest rate smoothing coefficient | 0.8 |
| Inflation under the quantity rule | 0.5 | Xu and Liu [33] |
| Output gap under the quantity rule | 1.5 |
| Real estate price response coefficient under the quantity rule | 1.5 |
| Monetary supply smoothing coefficient | 0.8 |
| Proportion of TFP declines in both sectors due to epidemic shocks | 0.0678 | Estimation based on Barro [35] estimation method with actual data from China. |
| Proportion of capital stock impaired due to epidemic shocks | 0.0678 | Chen et al. [34] |
|
