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Question on 2nd order approximation and measurement errors

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Question on 2nd order approximation and measurement errors

Postby mtpuglia » Tue Aug 13, 2013 1:07 pm

Hi,

I have a general question on the estimation of higher-order approximated models in Dynare. Does Dynare require measurement errors to be used on all observables for 2nd order and higher approximation (i.e. when the particle filter is being used)? Or is it able to handle the more general case when only some or none of the observables have measurement errors?

Thank you in advance,

MTP
mtpuglia
 
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