Dear Johannes,

I have a question regarding the relationship between standard errors of shocks and percentualization of observable variables.

- If we did not percentualize the data, for instance, the observable variables are in growth rates (for instance, we write 0.05 instead of 5%), then we should set the standard errors of exogenous shocks to 0.01 instead of 1 right?
- If we percentualize the data, for instance, the observable variables are in growth rates*100 (for instance, we write 5 percentage instead of 0.05), then we should set the standard errors of exogenous shocks to 1 instead of 0.01 right?

Thank you very much and look forward to hearing from you.

Best regards,

Jesse

PhD Candidate