Relationship between standard errors of shocks and percentualization of observable variables

Estimation ML/Bayesian estimation
1

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

  1. 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?
  2. 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
2

Yes, correct. If you scale by 100, then 1 means 1%.