34In estimating these parameter values, we approximate the uniform distribution with the following seven points (each with the mass of 1∕7  ): {`β - 3∇∕3.5  , `β - 2∇ ∕3.5  , `β - ∇ ∕3.5  , `β  , `β + ∇ ∕3.5  , `β + 2∇ ∕3.5  , β`+ 3∇∕3.5} . Increasing the number of points further does not notably change the results below. When solving the problem (14)(15) for the FBS specification we shut down the aggregate shocks (practically, this does not affect the estimates given their small size).