Variable | Definition | Value |
pd | Period of time (years) | 30 |
p | Survival rate | 0.6 |
a | Income replacement ratio | 0.4 |
δ | Fraction of time raising a child | 0.15 |
β | Elasticity of human capital accumulation with respect to education investment | 0.2 |
α | Share of capital income to total income | 0.3 |
σ1 | Taste toward retirement consumption | 1 |
σ3 | Taste toward leisure when old | 0.36 |
k | Physical capital per effective labor | 1 |
σ2 | Taste toward children | 0.36 |
A | Total productivity | 13.27 |
B | Productivity of learning process | 2.35 |