I got a questions on Bayesian esimation.When I run my code,the dynare show a mistake:The variable R has to be declared as observable since you assume a measurement error on it. Howver,the residuals of the static equations,steady-state results and eigenvalues are no problem.The model_diagnostics show that no obvious problems with this mod-file were detected.I spent a week and still can’t solve this problem.
The variable of my code is written in level, the observation is:
where y_obs,c_obs,i_obs is oberved variable (the data after first seasonally adjust, take log, and HP-filter),and pi_obs,r_obs（the data after first seasonally adjust, and HP-filter）.
Really hope for your reply which always help me a lot, thank you, professor.
Please provide the mod-file.
Thanks for your attention.
defines measurement error on the endogenous variable
R, but R is not an observable.
fiscal3.mod (6.3 KB)
Professor，I changed "stderr R,inv_gamma_pdf,0.01,inf ",or add
a measurement error on the r_obs equation:r_obs=log(R)-log(Rbar)+e_r_obs,but the dynare show that the variable R has to be declared as observable since you assume a measurement error on it.
I cancel the r_obs,dynare also show the same mistake.I don’t know what’s the reason for this problem.Please help.Thank you.
Again, you cannot assume measurement error on something not defined as an
I get it.But I define the e_r_obs at the end of varexo
I found that there is no same problem on the Dynare Forum.Can you give me some suggestion to deal with the problem?
You are confusing variable types here.
is the syntax for measurement error on endogenous variables without defining
If you want to set
e_r_obs, it should be
Thank you.I get it.