# Simulating Measurement Errors

**URL:** https://forum.dynare.org/t/simulating-measurement-errors/3274
**Category:** Dynare help (legacy posts)
**Created:** [17 July 2013 01:05 UTC](https://forum.dynare.org/t/simulating-measurement-errors/3274 "2013-07-17T01:05:53Z")
**Posts on this page:** 3
**Page:** 1

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### Author: ![Dr\_En\_Ami](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/a5b964/32.png) [@Dr\_En\_Ami](https://forum.dynare.org/u/Dr_En_Ami)
#### Post date: [17 July 2013 01:05 UTC](https://forum.dynare.org/t/simulating-measurement-errors/3274/1 "2013-07-17T01:05:53Z")

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Does Dynare support simulating measurement errors?

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### Author: ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)
#### Post date: [17 July 2013 06:41 UTC](https://forum.dynare.org/t/simulating-measurement-errors/3274/2 "2013-07-17T06:41:22Z")

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What do you mean with this? Measurement errors only make sense in the context of estimation where you have an observation equation of the state space form. If you want to simulate a system with something you want to interpret as measurement error using stoch\_simul, you have to do the following. Define your regular model. Say you want measurement error on output y. Then define a new variable (say y\_obs) and a structural shock that is your measurement error and define an additional equation

```auto

```

y\_obs now is your observed variable with measurement error. The underlying economic variable y will not be affected by the measurement error. When simulation the model, y\_obs will be simulated including the measurement error shock.

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### Author: ![Dr\_En\_Ami](https://forum.dynare.org/letter_avatar_proxy/v4/letter/d/a5b964/32.png) [@Dr\_En\_Ami](https://forum.dynare.org/u/Dr_En_Ami)
#### Post date: [17 July 2013 19:50 UTC](https://forum.dynare.org/t/simulating-measurement-errors/3274/3 "2013-07-17T19:50:15Z")

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That is exactly what I meant. Thank you.
