This repository contains instruction and code for calibrating the chi^n_s level parameters on individual disutility of labor functions in the S-period-lived agent overlapping generations model with endogenous labor.
A description of the model in this code is given in the PDF chapter, OGtext_ch7.pdf, in the documentation folder. The model solution and calibration are coded in Python using Python 3.6. The solution can be executed by navigating to the LaborCalibrate/code/ directory and running the script execute.py.
A description of our calibration approach is given in the PDF document, CalibrationNotes.pdf, in the documentation folder. We use a generalized method of moments approach to estimate the S values of the chi^n_s parameters in the model using the S household Euler equations for labor supply. These equations can only estimate the chi^n_s parameters up to a common factor. We then estimate that factor in our steady-state computation by making average income in the model match average income in the data.