Hi all,
I’m running the bkk example and there’s something that I find really weird.
The countries in the mod file seem to be symmetric. When I calculate the empirical moments using periods ranging from 10000-100000, the moments for the home variables and foreign variables are always a little different (usually the difference is around 10^-4). I had suspected that the correlation between the two shocks might be the cause, but making the correlation 0 still give different moments between the home and foreign variables. I wonder if this is just because the empirical moments are not precise enough due to limited number of periods in the simulation? I really appreciate your help!