. 2022 Dec 26;59:101908. doi: 10.1016/j.jhe.2022.101908

Table 2.

Externally calibrated model parameters.

Description	Parameter	Value	Source
Maximum age	$J$	56	Standard
Retirement age	$J_{r e t}$	41	Standard
Life-cycle income, peak age	$J_{p e a k}$	26	Ma and Zubairy (2021)
Life-cycle income, growth	$ξ$	0.50	Ma and Zubairy (2021)
Productivity standard deviation	$σ_{z}$	0.20	Kaplan et al. (2020a)
Productivity persistence	$ρ_{z}$	0.97	Kaplan et al. (2020a)
Retirement replacement rate	$ω_{r e t}$	0.50	Díaz and Luengo-Prado (2008)
Unemployment replacement rate	$ω_{u}$	0.50	Krueger et al. (2016)
Fraction receiving bequest	$π_{b}$	0.69	SCF
Bequest-to-income ratio	$ω_{b}$	0.57	SCF
Housing depreciation rate	$δ$	0.03	Harding et al. (2007)
Maximum LTV ratio	$θ_{m}$	0.90	Greenwald (2018)
Maximum PTI ratio	$θ_{y}$	0.50	Greenwald (2018)
House sale cost	$F_{h}$	0.06	Standard
Mortgage origination cost	$F_{m}$	0.005	FRED
Risk aversion	$σ$	2	Standard
Elasticity of substitution	$1 / ϑ$	2	Aguiar and Hurst (2007)
Interest rate	$r$	0.02	FRED
Mortgage interest rate	$r_{m}$	0.04	FRED