Merge pull request #30 from rickecon/frisch

@rickecon This is a great update to the PHL calibration. You confirmed that the model solves so everything looks good. Merging
EAPD-DRB · Oct 23, 2024 · a3e4f99 · a3e4f99
2 parents f5738bc + ae273d1
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diff --git a/docs/book/OGPHL_references.bib b/docs/book/OGPHL_references.bib
@@ -538,6 +538,16 @@ @ARTICLE{McDonaldXu:1995
   month =        {March-April},
 }
 
+@TECHREPORT{McNelisEtAl:2009,
+  AUTHOR = {Paul D. McNelis and Eloisa T. Glindro and Ferdinand S. Co and Francisco G. {Dakila Jr.}},
+  TITLE = {Macroeconomic Model for Policy Analyses and Insights: A DSGE Model for the Philippines},
+  INSTITUTION = {Bangko Sentral ng Pilipinas},
+  YEAR = {2009},
+  type = {BSP Working Paper Series},
+  number = {2009-01},
+  month = {December},
+  url = {https://www.bsp.gov.ph/Media_And_Research/WPS/WPS200901.pdf},
+}
 @BOOK{McKinney:2013,
   AUTHOR = {Wes McKinney},
   TITLE = {Python for Data Analysis},

diff --git a/docs/book/content/calibration/exogenous_parameters.md b/docs/book/content/calibration/exogenous_parameters.md
@@ -51,7 +51,7 @@ kernelspec:
 | $\tilde{l}$                      | Maximum hours of labor supply                                           | 1.000                                                 |
 | $\beta$                          | Discount factor                                                         | [0.960...0.960]                                       |
 | $\sigma$                         | Coefficient of constant relative risk aversion                          | 1.500                                                 |
-| $\nu$                            | Frisch elasticity of labor supply                                       | 0.400                                                 |
+| $\nu$                            | Frisch elasticity of labor supply                                       | 0.25                                                 |
 | $b$                              | Scale parameter in utility of leisure                                   | 0.573                                                 |
 | $\upsilon$                       | Shape parameter in utility of leisure                                   | 2.856                                                 |
 | $\chi^{n}_{s}$                   | Disutility of labor level parameters                                    | Too large to report here, see default parameters JSON |

diff --git a/docs/book/content/calibration/households.md b/docs/book/content/calibration/households.md
@@ -14,3 +14,6 @@ The default value for the intertemporal elasticity of substitution, $\sigma$, is
 ### Rate of time preference
 
 We take our default value for the rate of time preference parameter, $\beta$ from {cite}`Carroll:2009`.  We set the value to $\beta=0.96$ (on an annual basis).
+
+### Frisch elasticity of labor supply
+We take our default value for the Frisch elasticity of labor supply as $\nu=0.25$. This value was estimated by {cite}`McNelisEtAl:2009`.
diff --git a/ogphl/ogphl_default_parameters.json b/ogphl/ogphl_default_parameters.json
@@ -1,5 +1,5 @@
 {
-    "frisch": 0.4,
+    "frisch": 0.25,
     "g_y_annual": 0.036172072452455455,
     "S": 80,
     "J": 7,
@@ -101448,4 +101448,4 @@
     "frac_tax_payroll": [
         0.0
     ]
-}
+}