Calibration of Government Parameters

Government Spending as a Share of GDP

We’ve calibrated the vector \(\alpha_G=[0.215, 0.209, 0.207]\). These values are forecasts for 2025, 2026 and 2027. This came from the 2025 Budget of Expenditures and Sources of Financing Table A2 https://www.dbm.gov.ph/index.php/2025/budget-of-expenditures-and-sources-of-financing-fy-2025 .

Government spending on infrastructure as a share of GDP

We’ve calibrated the vector \(\alpha_I=[0.054, 0.054, 0.056]\). These values are forecasts for 2025, 2026 and 2027. This came from the 2025 Budget of Expenditures and Sources of Financing Table A2 https://www.dbm.gov.ph/index.php/2025/budget-of-expenditures-and-sources-of-financing-fy-2025