INTERPRETATION OF SIMULATED VARIABLES
Posted: Wed Apr 11, 2007 6:10 pmI read in another topic of the forum that the policy functions are expresed as functions of yhat_t variables where
yhat_t = y_t - ybar
I would like to confirm if the moments of the simulated variables are also expresed as moments of the yhat_t variables or as moments of the y_t variables.
Thank you
Mauricio V
yhat_t = y_t - ybar
I would like to confirm if the moments of the simulated variables are also expresed as moments of the yhat_t variables or as moments of the y_t variables.
Thank you
Mauricio V