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. Author manuscript; available in PMC: 2015 Jul 1.
Published in final edited form as: Scand J Econ. 2014 Mar 10;116(3):838–858. doi: 10.1111/sjoe.12060

Table 2.

Parameters used in calibration

Interest rate r 0.03
Wage growth rate σ 0.0127
Rate of time preference δ 0.03
Disutility of work d 0.87
Coefficient of relative risk aversion β 2