Table B5: Parameter description and estimation

|Paramet|er Description|Prior|Prior|Prior|Posterior|90%<br>HPD|
|---|---|---|---|---|---|---|
|||dist.|mean|std.|mean|interval|
|Persisten|ce parameters (continued)||||||
|_ρVR_|Productivity shock for renew. energy frms|_B_|0.5|0.1|0.71|[0_._56_,_0_._86]|
|_ρE_|Productivity shock for energy frms|_B_|0.5|0.1|0.75|[0_._68_,_0_._82]|
|_ρKZ_|Productivity shock for core goods capital bundlers|_B_|0.5|0.1|0.64|[0_._55_,_0_._74]|
|_ρCG_|Government consumption shock|_B_|0.5|0.1|0.66|[0_._57_,_0_._75]|
|_ρIG_|Government investment shock|_B_|0.5|0.1|0.70|[0_._61_,_0_._79]<br>|
|_ρY ∗_|Demand shock in the RoW|_B_|0.75|0.05|0.78|[0_._72_,_0_._84]|
|_ρpZ∗_|Core goods price shock in the RoW|_B_|0.75|0.05|0.89|[0_._86_,_0_._92]|
|_ρWL_|Low-skilled wage infationsmoothing|_B_|0.5|0.1|0.24|[0_._14_,_0_._34]|
|_ρDE_|Windfall proft shock for energy frms|_B_|0.5|0.1|0.77|[0_._71_,_0_._83]|
|_ρLH_|High-skilled input productivity shock for labor frms|_B_|0.5|0.1|0.59|[0_._43_,_0_._76]|
|_ρLL_|Low-skilled input productivity shock for labor frms|_B_|0.5|0.1|0.76|[0_._69_,_0_._83]|
|_ρY_|Productivity shock for retail frms|_B_|0.5|0.1|0.75|[0_._66_,_0_._84]|
|_ρpO∗_|Fossil fuel price shock|_B_|0.75|0.05|0.85|[0_._81_,_0_._89]|
|_ρ_Π_∗_|RoW infation shock|_B_|0.5|0.1|0.32|[0_._21_,_0_._42]|
|Shock pa|rameters||||||
|_εWL_|Low-skilled wage infation shock|_IG_|0.1|1|0.047|[0_._0309_,_0_._0619]|
|_εR_|Home country interest rate shock|_IG_|0.01|0.01|0.0045|[0_._0039_,_0_._0051]|
|_εRW_|RoW long-term interest rate shock<br>|_IG_<br>|0.001<br>|0.001<br>|0.0011<br>|[0_._0009_,_0_._0012]<br>|
|_εC_|Consumption preference shock|_IG_|0.1|1|0.216|[0_._118_,_0_._299]|
|_εNH_|High-skilled labor supply preference shock|_IG_|0.1|1|4.153|[2_._490_,_5_._656]|
|_εNL_|Low-skilled labor supply preference shock|_IG_|0.1|1|4.200|[2_._503_,_5_._943]|
|_εRB_|Flight to safety shock|_IG_|0.01|0.01|0.018|[0_._015_,_0_._020]<br>|
|_εRS_|Equity risk premium shock|_IG_|0.1|1|0.140|[0_._066_,_0_._235]<br>|
|_εPZ_|Core good price mark-up shock<br>|_IG_<br>|0.1|1|0.806|[0_._513_,_1_._069]<br>|
|_εZE_|Energy efciency shock to core goods frms|_IG_|0.1|1|0.248|[0_._115_,_0_._384]<br>|
|_εVZ_|Productivity shock for core goods value-added frms|_IG_|0.1|1|0.033|[0_._025_,_0_._042]|
|_εVR_|Productivity shock for renew. energy frms|_IG_|0.1|1|0.088|[0_._052_,_0_._121]<br>|
|_εE_|Productivity shock for energy frms|_IG_|0.1|1|0.082|[0_._072_,_0_._092]|
|_εVF_|Productivity shock for fossil energy frms|_IG_|0.1|1|0.266|[0_._193_,_0_._333]|
|_εDE_|Windfall proft shock for energy frms|_IG_|0.1|1|0.005|[0_._004_,_0_._006]|
|_εLH_|High-skilled input productivity shock for labor frms|_IG_|0.1|1|0.043|[0_._026_,_0_._061]|
|_εLL_|Low-skilled input productivity shock for labor frms|_IG_|0.1|1|0.258|[0_._199_,_0_._314]|
|_εKZ_|Productivity shock for core goods capital bundlers|_IG_|0.1|1|0.076|[0_._063_,_0_._091]|
|_εCG_|Government consumption shock|_IG_|0.1|1|0.040|[0_._035_,_0_._045]|
|_εIG_|Government investment shock|_IG_|0.1|1|0.100|[0_._085_,_0_._112]|
|_εY ∗_|Demand shock in the RoW|_IG_|0.01|0.01|0.017|[0_._015_,_0_._020]|
|_εpZ∗_|Core goods price shock in the RoW|_IG_|0.01|0.01|0.010|[0_._009_,_0_._011]|
|_εγW_|Foreign bond risk premium shock|_IG_|0.1|1|0.148|[0_._100_,_0_._196]|
|_εY_|Productivity shock for retail frms|_IG_|0.1|1|0.037|[0_._030_,_0_._044]|
|_εWD_|Domestic input productivity shock for wholesale frms|_IG_|0.1|1|0.049|[0_._040_,_0_._057]|
|_εWI_|Imported input productivity shock for wholesale frms|_IG_|0.1|1|0.130|[0_._105_,_0_._155]|
|_εW ∗_|Export demand shock for RoW wholesale frms|_IG_|0.1|1|0.378|[0_._209_,_0_._554]|
|_εpO∗_|Global fossil fuel price shock|_IG_|0.1|1|0.092|[0_._081_,_0_._103]|
|_ε_Π_∗_|RoW infation shock|_IG_|0.01|0.01|0.0031|[0_._0028_,_0_._0035]<br>|
|_εGDPm_|Output measurement shock|_IG_|0.01|0.01|0.035|[0_._031_,_0_._039]|
|_εInvm_|Investment measurement shock|_IG_|0.01|0.01|0.087|[0_._076_,_0_._100]|

_Notes_ : RoW stands for the rest of the world. Data sources reported in the main text.

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