Measurement errors and Welfare analysis

Hi there

I have a question, I estimated a model in which I´ve included measurement errors of two variables, the estimated parameters will be used in welfare analysis, i.e., take the estimated values to calibrate a new mod file to perform second order analysis, so my question is , in the calibrated model, can measurement errors be completely neglected for the welfare analysis? Since I will no longer have observable equations

Thanks in andvance

Yes, the measurement error is only there to describe the observed data and why it deviates from the actual model variable. For welfare, only the actual model variables matter. As long as your new model completely describes those, you are good to go without measurement error.