In my model there is a endogeneous variable q(t),house price. I want to specify a measurement error in this variable.
also, I have a stasionary equation: q(t)/c(t)=beta*q(t+1)/c(t+1).
I want to know how to how to specify a measurement error in a stasionary equation ?
also,can I specify std of this measurement error follows a normal distribution or other distribution and estimate the std. of measurement error in estimate_paras bolck ?
My aim is that to find that how a measurement error in q(t) will affect the investment and output in the model.