Hi,
I have a multisector small open economy RBC model and I want to calibrate it.
Do you know any paper which helps me in choosing the calibration restrictions? I mean which type of restrictions I should use? GDP share of the sectors or total labor supply? or…?
The aim of the model is to explain business cycles that are raised by oil price shocks in an oil-exporting country.
I am not aware of anything that would be of general help. People use various long-run ratios, but nothing in generic.
Thank you so much.
Can you name a few good papers with SOE-RBC model that explain their calibration procedure fluently?
I would suggest to maybe have a look at the Uribe/Schmitt-Grohé textbook Open Economy Macroeconomics (http://www.columbia.edu/~mu2166/book/)