The purpose of a parameter entity is to serve as a shorthand for some or all of the content part of an element declaration.
The general form is:
<!ENTITY %ename"text">
For example, suppose you have a lot of tags whose
content model is "#PCDATA|bold|ital)*".
You could define an entity like this:
<!ENTITY bitext "(#PCDATA|bold|ital)*">
Then, to define an element <excuse> with that content:
<!ELEMENT excuse %bitext;>