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- Nominal GDP for computing the weights used in the aggregation is taken from the IMF International Financial Statistics (IFS). This data is also used to calculate the size of the core and periphery region. Furthermore, for the calibration we use import data (Source: IMF Direction of Trade Statistics) and data on nominal household consumption (Source: IFS) to compute the fraction of imported goods. The size of the non-durable sector is calculated as a ratio of gross value added by the construction sector to that of all branches (Source: Eurostat). The steady state ratio of defaults is calculated using non-performing loans as percent of total loans for the euro area between 2000-2011 (Source: World Bank World Development Indicators Database).
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- Real Residential Investment: Gross …xed capital formation in construction work for housing, seasonally adjusted by the source. Data for Ireland is only available on an annual basis while data for Greece is only available from 2000 onwards on an annual basis. Both data is interpolated to obtain quarterly values. Source: Eurostat. ECB Interest Rate: 3-month Euribor, Source: ECB. Household Outstanding Debt: Data seasonally adjusted by the source. Data for Greece starts in 1997q4, for Ireland in 2002q1, and for Italy in 1997q1. Source: Eurostat.
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