I am estimating a medium scale DSGE model for a developing country with data limitations. The original model variables are expressed in per capital terms. I have some issues in observing per capita data for output, consumption, investment, government expenditure etc.
- both population and employed population data is not available on quarterly frequency.
- Many papers have used employed population or labour force to calculate per capita values. But even to do an interpolation of annual data, I can’t get consistent annual data on this due to different area coverage in labour surveys at different years due to the civil war.
Given these facts I am left with 2 options.
- use aggregate numbers as observables ( as in the original paper Medina and Soto (2007))
- use an interpolated overall population series to calculate the per capita observables.
Can anyone suggest me the best option for me to get a better result?