Hi all!
Recently I took a quick glance over the C++ code for Liu, Wang, and Zha (2013 Econometrica). The code is available on Zha's homepage: tzha.net.
They first inputted their model in Mathematica, then converted .nb files to .m files, and finally converted .m files to c files. Among these files, some named "Cinput_MeasureEqns_TAG.m" raise a question to me. What are "measurement equations"? In effect, I didn't find any comment on this conception in their code, so I think it might be a technical term. In their file "Generate_gensysform_credit4housing.nb" , there is a block named "measurement equations" at the bottom, but it's blank.
I searched dynare user's guide, and also found the key word, but without any explanation. Are these equations related to Kalman filter and log-likelyhood functions? Or, are these equations related to the observable variables?
BTW, have anyone implemented their C++ code?
Thanks in advance for any help!
Fuyang