Generic Misc Calibration

[FanWangEcon]

• Does model stationary distribution match with 2020 observed (2020-06-17 09:10)
• Currently, everything in the model is normalized to real income per capita, which was about 60,000 last year. Since we have households in the model, we can compare average household income in the model and the data. Average household income was about 90,000 last year. I'm much more used to thinking about individuals. So I think that means the calibration target for theta is wrong. Right now, we're calibrating theta such that aggregate income (so integrating over interest earnings, labor earnings, social security benefits, and spousal income) over aggregate population equals 1. Where a value of 1 corresponds to 58,000 dollars. Hmm, actually, I'm not sure. If population in the model is the entire population in the economy, then that does indeed correspond to income per capita. I guess the problem is that the population doesn't really refer to the population since we're only counting household heads.