Mean: conditional or unconditional ?

[petros_varth]

Hi All,

The mean in the MOMENTS matrix of Dynare output is the conditional or unconditional mean, in the terminology of Schmitt-Grohe and Uribe (2004) JEDC?

I am talking about second order approximation case.

Thanks.

P.

[ahnulxy]

The theoretical mean could be obtained by summing up the steady state and the mean correction term in oo_.gamma_y{nar+3}.
Technically speaking, the mean should be unconditional. It should be average over all possible states, i.e. across the distribution of the initial states, hence unconditional. I do not so guarantee about this, this is just my understanding.

[jpfeifer]

Yes, it is the unconditional one.