Dear Professor Pfeifer,
I have read the content about calibration on stock variables in the paper A Guide to Specifying Observation Equations for the Estimation of DSGE Models. To make sure that I understand it correctly, I display the following situation. Would you please take a look?
Take a short sample as an example, the quarterly data is:
| GDP | debt | |
|---|---|---|
| Q1 | 3800 | 15000 |
| Q2 | 3900 | 15700 |
| Q3 | 4100 | 16300 |
| Q4 | 4200 | 17000 |
So the year data of GDP is 3800+3900+4100+4200=16000. If the frequency of the model is in quarter and the variable Y and B in the model represent for GDP and debt respectively. Then the steady state of Y and B should meet the condition \frac{B}{4\times Y}=\frac{17000}{16000}. Is this the right way?
Thank you!