Parameter | Value (s) | Units | Comments | |

α | labor's share | 0.7 | share | |

ρ | time preference rate, adjusted | 0.5% | per year | chosen to produce a steady-state investment to adjusted output ratio of 0.27 |

δ | capital depreciation rate, adjusted | 7.25% | per year | 5% pure depreciation, adjusted for 1% population growth, 0.75% technical change, and 0.5 percent expected investment price trend |

σ | intertemporal consumption elasticity | [0.5, 2] | elasticity | benchmark value of 1.35 (Mulligan, 2005) |

η | labor substitution elasticity | [0.4, 1.1] | elasticity | benchmark value of 0.75 |

A | productivity level | normalized | normalized so that the low-distortion steady state capital and prime labor are one | |

γ | leisure preference | normalized | ||

Γ | prime-worker time endowment | 1.32 | low-distortion steady state has 76% prime labor usage | |

θ | prime-worker's share of labor income | 0.9 | share | a function of the preference parameters |