Dynare forums

Hi all,

I am trying to estimate a model with three endogenous variables, three equations, three shocks AND TWO ADDITIONAL OBSERVABLE EXOGENOUS VARIABLES... a limited information model, that is to say.

I cannot get it to work. How should I call the two additional exogenous variables: as endogenous or exogenous? Should I write three or five equations (where the last two eqns would be identity eqns)?

Thanks so much for your help,

Antonio

you need as many shocks (or more ) as you have observables.

Thanks so much, Reuben. I already made it to work.