March 23, 2005

Description Gamma Model; version pension study

The description of the GAMMA model presented in this paper is related to the version used for the pension study (Westerhout et al. (2004)).

The main difference with the version of Draper and Westerhout (2002) and Draper et al. (2003) concerns labour supply. Labour supply is now endogenous contrary to the earlier versions. Future research will focus on welfare analysis, endogenizing human capital, infrastructural capital and its influence on labour productivity.

Moreover, the paper presents the theoretical background of the behavioural relations and details on the calibration method.


Nick Draper
Jan Bonenkamp
Richard Rosenbrand