INTERPRETATION OF SIMULATED VARIABLES

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INTERPRETATION OF SIMULATED VARIABLES

Postby jpmauricio » Wed Apr 11, 2007 6:10 pm

I 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
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Postby MichelJuillard » Sat Apr 21, 2007 4:51 pm

The moments are centered moments of y_t

Best

Michel
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