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