From Eric Sim’s tutorial (Graduate Macro Theory II:Notes on Using Dynare, Spring 2011), we have 5 endogenous variables var y i k a c;. I understand that y, c, i and k are endogenous control variables. k(-1) is an endogenous state variable and the variable (a) is an exogenous state variable. Please are these definitions correct?
Also in state-space form, does all the variables (y i k a c) belong to the state equation? And thus we can choose a subset of (y, i, k, c) to be our vector of observables (in the observable equation) assuming we have data on these? Many thanks!!