Question about estimation

[jpfeifer]

If the frequency and the net/gross concept match, the answer is yes. See also

Specifying observation equation for interest rate

Denote with R_t_obs the quarterly gross interest rate. Then, if and no logging has taken place to derive a loglinearization, you should have R_t=1+R_t_obs/400 See also section 4.5.3 of Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”