“…The model is calibrated 4 following our previous work, Cole, Guerello and Traficante (2016), which mainly follows Ferrero (2009), so we consider the top 5 Eurozone countries, which account for more than 80% of Eurozone GDP and we divide them into the periphery (namely, France, Italy, Spain and The Netherlands), country F, and the core (namely Germany), country H. The size of country H is set according to the relative GDP size to h = 0.4, as Germany accounts for over 35% of Eurozone GDP.…”