Does the calibration of parameters for a growth model need to include the growth rates?
For example, in the case of a standard DSGE model one would calibrate the capital depreciation rate from the SS capital accumulation equation (K(t+1)=Ik+K(t)*(1-delta(k))), giving delta(k) = I/K, because at SS K(t+1)=K(t)=K.
But for a model with a BGP, should I take into account the growth rate of the economy such as : delta(k)= I/K - g ? I/K being the ratio of investment on capital stock at SS (long-run average). With my capital accumulation equation : K(t+1)=Ik+K(t)(1-delta(k)). At BGP, K(t+1) becomes K(t)(1+g).
Or should I calibrate my parameters following the steady state of my economy and hence calibrate delta(k)=I/K ?