I read a PDF file by professor Johans Pfiefer about the observable variables in DSGE models estimation, in a simple form we insert observable variables names in a typical form of X_obs in endogenous variables section, and in the model section then we insert names of these variables in the form of
but my question is that in some log-linear models I can see measurement equasions in the form of growth rate with steady state value for GDP, consumption,Investment ,…
I used observable variables in the model in the form of
varobs Y C I
and I didn’t use Y_obs C_obs I_obs in endogenous variables section and model section. When I run this DSGE model these is not any problem or error in Dynare.
My question is that my work in employing of observable variables in the model is right or not?? (my DSGE model is log-linear and these is not unit root in shocks equations).