This is the replication of the standard model, and she shows us how to generate artificial data which is then used for estimation.
The command she uses is “stoch_simul(periods=500)” and "datatomfile(‘datarabanal_hybrid’,])"
This command generates series for 500 periods for the variables.
My question is this: If I want to generate say 5 sets of data for 200 periods, and discard 5,000 or so for each data set, how do I go about doing so in this model?
stoch_simul(order=1,periods=5200,simul_replic=100);
[sim_array]=get_simul_replications(M_,options_);
using the get_simul_replications from my homepage. In sim_array you will find all simulated values. You would have to drop the initial 5000 simulation points.
i did what you said, and I got the series I wanted. Just one thing, wouldn’t it be more efficient to repeat this process multiple times?
Also a general question is how can one extrapolate artificial data from a model, to match the data, because for example, data generated from the RBC model does not match the predictions of the real world data at all! A good model would be one that matches, then?
Sorry, I am doing an MA and this stuff is not very clear to me.