17. Calibrating the OG-Core model

As noted in the introduction, the OG-Core model must be parametrized to represent a specific country. We refer to the process of finding parameter values that represent a specific economy as “calibration”. Because data sources for country-specific data differ, there’s not a single way to calibrate all economies. We have therefor have created country-specific calibration packages. Some examples of these include the United States, the United Kingdom, South Africa, India, and Malaysia.

In this chapter, we describe the process of creating a country-specific calibration and provide exercises related to certain components of that calibration. We will use as an example the calibration of OG-Core to South Africa, in the OG-ZAF package.