Household transfers as a fraction of GDP

Table of contents

• Household transfers as a fraction of GDP

Government transfers to households are described by the equation:

TRAN = TRANX + transgdp*OUTP ;

TRAN is the government transfers to households. TRANX is an exogenous adjustment that can be made to these transfers. transgdp*OUTP is the fraction of the region’s output that is transferred to households, based on the constant parameter transgdp. Currently, transgdp is set to 6% for all regions. This can be altered by modifying the parameter calibration logic.