revenue-academy/og-ind

Overlapping Generations Model for India

og-ind's Issues

Parameters calibrated off macro data

Right now, best estimates of parameters:

Fiscal policy parameters

• alpha_G = 0.09 (this is the ratio of government spending (excluding transfers to households, interest payments on debt, and infrastructure investment) to GDP)
• alpha_T = 0.03 (this is the ratio of government transfer payments to households to GDP)
• alpha_I = 0.01 (this is the ratio of government spending on infrastructure investment to GDP)
• initial_debt_ratio = 0.90 (source)

None of these are directly from anyone source, but pieced together from the Ministry of Finance expenditure profile and this RBI report

Production function parameters

• gamma = 0.48 (Capital's share of income, source)

Data on household labor supply and wealth

Consider the National Survey of Household Income and Expenditure

Data: input-output tables

These tables are provided by the Asian Development Bank here.

Better population data

The UN seems to have as good/better population data than the Indian Census in their World Population Prospects, which more ease of access.

Estimating the size of the informal sector

Murthy (IMF conference paper) estimates that the informal sector accounts for about 53% of total economic production (he also estimates the GVA by industry for the formal and informal sectors).

Tax compliance rates

This article suggests the compliance rate is about 11.6%

Das-Gupta et al. (1995) suggesting higher compliance rates than above, but their data is dated.

Tagat (2019) with an estimate, plus a good review of other studies.