Hello everybody,

I’m a student and i’m a new dynare user. In paper “Estimating a small open economy DSGE model with indeterminacy: Evidence from China”. As data description, they have:

Output gap : Gap_t = 100*ln(Y_t/Ys_t); Y_t : real GDP, Ys_t : potential output.
Inflation rate: Inf_t = 400*ln(P_t/P_t(-1)); P_t : CPI

Nominal Interest Rate : R = CHIBOR (China inter-bank offered rate).

Then they have measurement equations :

Gap_t = y_t

Inf_t = 4

*pi_t*

R = 4R_t

R = 4

But, in Lubika and Schorfheide (2007): The measurement equations:

output growth : deltaY_t = gammaQ + y_t - y_t(-1) + z_t

Inflation rate : Inf_t = piA + pi_t

Interest rate : Rob_t = piA + rA+ 4*gammaQ + R_t

Both of them have the same data description ( except output gap ). But , they have difference measurement equations.

Any ideas about why? Which measurement equations should i choose ? I have the same data with China case. My english is not good, sorry for any mistake

Thank you in advance for your help.