Dynare forums

Hi all,

If I have understood well, in Dynare 4.1.3 we are able to introduce covariance terms in the osr command, right? Is there an example of that?


Thank you very much in advance.

You can introduce a weight to the covariance of two variables in the objective with the following syntax (for two variables x and y):

Code: Select all

optim_weights;
x, y 1;
end;


Note the absence of comma after the second variable.

Thank you very much indeed.