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SSASIM input table ESTAB

Contains description of the productive establishment sector of the economy that combines hired labor and owned capital to generate gross national product. The economy can be modeled as in the Trustees' Report with exogenously trending labor productivity, or can be modeled using a simple neoclassical growth model with a Cobb-Douglas aggregate production function and labor-augmenting technological change. In the latter case, the process of capital accumulation can affect returns on equity assets. For more details, consult the section of the SSASIM Guide entitled 'Embedded Growth Model for Endogenous Growth' and the references cited there.

Parent table is: RUN

There are no child tables.

Go to SSASIM input parameters overview

SSASIM:   ESTAB . id
Identifies set of establishment parameters specified on this row of table, so id value should be unique.

Valid values: 1 to 999999999 (nine digits), Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . notes
Describes specification of table row in free-form note.

Valid values: any ASCII text (Note: do not copy and paste from a word processor because of the possibility of embedded non-ASCII characters.)

Source code: notes are not read by the model

SSASIM:   ESTAB . pgr0
Specifies initial RUN.year_zero value of productivity growth rate (pgr), which is one of model's stochastic variables whose future ultimate (or post-transition) values are determined by ASSUMP and child tables parameters (see above). Value of pgr0 is expressed as an annual percentage rate.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_kink
Specifies whether or not transition path from initial value of productivity growth rate to its ultimate, post-transition values has a kink point or is linear (without a kink).

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_kvalue
Specifies pgr kink point value if pgr_kink is true. Value of pgr_kvalue is expressed as percentage productivity growth rate in the kink year. If kink point is assumed, the pgr transition path is a linear interpolation from its initial year value to kink point value in every scenario. Scenario variation in transition path is restricted to years after pgr_kyear (see below), or after inf_byear (if inf_bend is true; see below), as pgr values are interpolated between pgr_kvalue (or pgr_bvalue) and ultimate value of pgr, which is generated using ASSUMP and child tables parameters. Value is read only if pgr_kink is true.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_kyear
Specifies simulation year of pgr kink point value if pgr_kink is true. Value is read only if pgr_kink is true.

Valid values: 1 to ( RUN.num_years - 1 ), Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_bend
Specifies whether or not transition path from kink value of productivity growth rate to its ultimate, post-transition values has a bend point or is linear (without a bend).

Valid values: T (=1) or F (=0) (for true or false), Logical [True value is allowed only if pgr_kink is true.]

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_bvalue
Specifies pgr bend point value if pgr_bend is true. Value of pgr_bvalue is expressed as percentage productivity growth rate in the bend year. If bend point is assumed, the pgr transition path is a linear interpolation from its kink year value to bend point value in every scenario. Scenario variation in transition path is restricted to years after pgr_byear (see below) as pgr values are interpolated between pgr_bvalue and ultimate value of pgr, which is generated using ASSUMP and child tables parameters. Value is read only if inf_bend is true.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . pgr_byear
Specifies simulation year of pgr bend point value if pgr_bend is true. Value is read only if pgr_bend is true.

Valid values: 1 to ( RUN.num_years - 1 ), Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . wsg0
Specifies initial RUN.year_zero value of wage share growth rate (wsg), which is one of model's stochastic variables whose future ultimate (or post-transition) values are determined by ASSUMP and child tables parameters (see above). Value of wsg0 is expressed as an annual percentage rate.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . wsg_kink
Specifies whether or not transition path from initial value of wage share growth rate to its ultimate, post-transition values has a single kink (or bend) point or is linear (without a kink).

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . wsg_kvalue
Specifies wsg kink point value if wsg_kink is true. Value of wsg_kvalue is expressed as percentage wage share growth rate in the kink year. If kink point is assumed, the wsg transition path is a linear interpolation from its initial year value to kink point value in every scenario. Scenario variation in transition path is restricted to years after wsg_kyear (see below) as wsg values are interpolated between wsg_kvalue and ultimate value of wsg, which is generated using ASSUMP and child tables parameters.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . wsg_kyear
Specifies simulation year of wsg kink point value if wsg_kink is true.

Valid values: 1 to ( RUN.num_years - 1 ), Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . hwg0
Specifies initial RUN.year_zero value of hours worked growth rate (hwg), which is one of model's stochastic variables whose future ultimate (or post-transition) values are determined by ASSUMP and child tables parameters (see above). Value of hwg0 is expressed as an annual percentage rate.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . hwg_kink
Specifies whether or not transition path from initial value of hours worked growth rate to its ultimate, post-transition values has a single kink (or bend) point or is linear (without a kink).

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . hwg_kvalue
Specifies hwg kink point value if hwg_kink is true. Value of hwg_kvalue is expressed as percentage hours worked growth rate in the kink year. If kink point is assumed, the hwg transition path is a linear interpolation from its initial year value to kink point value in every scenario. Scenario variation in transition path is restricted to years after hwg_kyear (see below) as hwg values are interpolated between hwg_kvalue and ultimate value of hwg, which is generated using ASSUMP and child tables parameters.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . hwg_kyear
Specifies simulation year of hwg kink point value if hwg_kink is true.

Valid values: 1 to ( RUN.num_years - 1 ), Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . compen_s_g
Specifies annual growth rate in the share of compensation in national output. Growth rate is expressed in percentage (not decimal) terms.

Valid values: any, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . gdp0
Specifies gross domestic product (GDP) in RUN.year_zero, where GDP is expressed in nominal billions of dollars.

Valid values: any positive, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . ws_earn0
Specifies aggregate wage-and-salary earnings in RUN.year_zero. Expressed in nominal billions of dollars. (Compare with self-employment-income earnings below.)

Valid values: any positive, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . sei_earn0
Specifies aggregate self-employment-income earnings in RUN.year_zero. Expressed in nominal billions of dollars. (Compare with wage-and-salary earnings above.)

Valid values: any non-negative, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . awi_avgyrs
Specifies number of years used to average past AWI values in CBA-mode OASDI benefit-calculation approximation.

Valid values: any positive, Integer

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . using_c_d
Specifies whether or not using embedded neoclassical economic growth model with a Cobb-Douglas production function and labor-augmenting technological change. If not using, then the assumed productivity growth rate assumptions simply increase labor productivity and GDP as in the Trustees' Report projections. For more details, consult the section of the SSASIM Guide entitled 'Embedded Growth Model for Endogenous Growth' and the references cited there.

IMPORTANT NOTES: ESTAB.using_c_d cannot be set to T unless using the Windows version of PSG models. This feature was originally designed for analysis of individual account reforms of social security. It has been used rarely and has not been maintained and tested at the same level of intensity as other capabilities of the PSG models. All this means that using the embedded economic growth model in your PSG model runs is something that you do at your own risk, making a major time commitment to check that model results seem sensible.

Valid values: T (=1) or F (=0) (for true or false), Logical

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . cap_gdp_r
Specifies capital-output ratio in RUN.year_zero used to initialize the neoclassical growth model's stock of capital in RUN.year_zero. Not read by the model when using_c_d is false.

Valid values: any positive, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . c_d_alpha
Specifies capital-share parameter in neoclassical growth model's Cobb-Douglas production function: Y = K^a * (AL)^(1-a), where a denotes the value of c_d_alpha and A denotes the index a labor-augmenting productivity. Not read by the model when using_c_d is false.

Valid values: any positive value less than 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . depr_rate
Specifies annual capital depreciation rate parameter in neoclassical growth model. Not read by the model when using_c_d is false.

Valid values: any positive value less than 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . rtn_links
Specifies whether or not asset return links are active. If they are, then changes in the return on tangible capital (as calculated in the neoclassical growth model) cause changes in the all the asset returns simulated in capital market module. The change in asset returns are proportional to the change in the return on tangible capital so that negative nominal interest rates are avoided. For details of how these adjustments are made, see the capital_return_adjustment_of_asset_returns function in the capmrkt.cpp file. IMPORTANT NOTE: when SSASIM is operating in the OLC mode, the model automatically executes a two-iteration calculation when links are active. In order to use the endogenous growth model with GEMINI, the GEMINI run must be executed using the SSASIM RCS mode with the OLC mode active.

Valid values: T (=1) or F (=0) (for true or false), Logical [Cannot be true when ESTAB.using_c_d is false because links require neoclassical growth model to be active.]

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . saving_r0
Specifies national saving rate in RUN.year_zero. Rate is expressed as a decimal fraction (not a percent) of GDP. Note that when using_c_d (see above) is false, then the value of saving_r0 does not affect the simulation results because productivity growth is not influenced by the level of saving and investment. When using_c_d is true, and the embedded neoclassical growth model is active, then one of two cases can be in effect. First, when ESTAB.saving_links (see below) is false, then the national saving rate (and the domestic investment rate) in all subsequent years of the simulation equals this initial year value. In the second case when ESTAB.saving_links (see below) is true, then the national saving rate in subsequent simulation years is determined endogenously.

Valid values: any positive value less than 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . sav_links
Specifies whether or not saving links are active. If they are, then changes in social security finances (both DB-tier and DC-tier) affect the national saving rate, and hence, the rate of investment in tangible capital. For details of how these shifts in saving and investment are made, see the adjust_saving_investment_rates function in the estab.cpp file. IMPORTANT NOTE: when SSASIM is operating in the OLC mode, the model automatically executes a two-iteration calculation when links are active. In order to use the endogenous growth model with GEMINI, the GEMINI run must be executed using the SSASIM RCS mode with the OLC mode active.

Valid values: T (=1) or F (=0) (for true or false), Logical [Cannot be true when ESTAB.using_c_d is false because links require neoclassical growth model to be active.]

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . nfi_frac0
Specifies net foreign-investment fraction in RUN.year_zero. Expressed as a decimal fraction (not a percent) of national saving. Not read by the model when sav_links is false.

Valid values: -1.0 to +1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . nfi_frac
Specifies net foreign-investment fraction in all simulation years following RUN.year_zero. Expressed as a decimal fraction (not a percent) of national saving. Not read by the model when sav_links is false. Note: the definition of nfi_frac means that the domestic investment rate equals the national saving rate times (1-nfi_frac).

Valid values: -1.0 to +1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . ri_sur_o_r
Specifies offset rate of the federal government surplus caused by changes in the magnitude of the OASI trust-fund surplus. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . di_sur_o_r
Specifies offset rate of the federal government surplus caused by changes in the magnitude of the DI trust-fund surplus. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . gsur_s_o_r
Specifies offset rate of national saving caused by changes in the magnitude of the federal government surplus. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . dc_c_s_o_r
Specifies offset rate of national saving caused by changes in the magnitude of social security individual account contributions. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . dc_c_tax_r
Specifies average federal government tax rate applied to social security individual account contributions, if there is a loss in tax revenues caused by the account contributions. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . dc_c_te_f
Specifies fraction of social security individual account contributions that are offset by changes in other tax-exempt saving. Expressed as a decimal fraction (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp

SSASIM:   ESTAB . dc_b_tax_r
Specifies average federal government tax rate applied to withdrawals from security individual accounts, which will taxable, and therefore, increase federal government tax revenues. Expressed as a decimal rate (not a percent). Not read by the model when sav_links is false. For details of how this parameter is used in the saving adjustment logic, see the adjust_saving_investment_rates function in the estab.cpp file.

Valid values: 0.0 to 1.0, Real

Source code: estab.h and estab.cpp