Hi
would appreciate if someone could explain (or to point to a study in which it is explained) what is our Criterion for choosing variable in varobs block?
best regards
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varobs block
by mhkarami » Mon Aug 03, 2015 7:29 am
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Re: varobs block
by jpfeifer » Mon Aug 03, 2015 3:14 pm
See Remark 7 (Which Observables for Estimation?) in Pfeifer (2013): "A Guide to Specifying Observation Equations for the Estimation of DSGE Models" at https://sites.google.com/site/pfeiferecon/Pfeifer_2013_Observation_Equations.pdf
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