Question on calibrating the model

General DSGE Modeling
1

Dear Professor Pfeifer,

I mean to calibrate the model in LWZ(2013) (LAND-PRICE DYNAMICS AND
MACROECONOMIC FLUCTUATIONS) using the data of my country. As they do not include the housing production agent in the model, do I need to eliminate the housing investment part from GDP data when doing the calibration?

Thank you!

2

Did you eliminate that part from your model? Or did they do that? Usually, we keep housing as part of the capital stock without modeling it as a sector separate from other production.