The calibration procedure involves choosing functional forms for the utility and
production functions, and assigning values to the parameters of the model based on either
micro-evidence or long run growth facts. Cooley and Prescott (1995) provide an overview
of the general strategy.The next several subsections explain the reasoning and
consequences of some standard modeling choices and describe in detail the calculation
and determination of various parameters or targets that are typically used in the RBC
framework.