jmaih
commented
12 months ago Hi,
The way you treat the data has to be consistent with the implications of your model.
On Mon, Nov 27, 2023, 06:48 UsernameUser100 @.***> wrote:
Hello.
I’m in the middle of writing a paper using RSIE toolbox and always check RISE Toolbox Documentation Release 20230709 for reference. I have a question about the code of “4.2.6 Maximizing the posterior” on page 115 of the documentation.
What differences does it make to add 'data_demean' option in estimate(...)?
Do I need to add ‘data_demean' true in estimate(…,'data_demean',true,,‘data’ db, …) after I demean data (such as interest rate and inflation), which is db in estimate(...).
For Example (based on 4.2.5 Collecting and transforming the data on page 114)
d=fetch_fred({'CPALTT01USQ661S','BOGZ1FL072052006Q'}); db=struct(); db.P=log(d(1).series/d(1).series{-1}); db.R=d(2).series/100;
db.P=db.P-mean(db.P) %%% Subtracting the sample mean from data db.R=d(2).series/100-mean(db.P) %%%Subtracting the sample mean from data (In here, I assume that inflation and interest rate are 0 in steady state for simplicity, though I think interest rate is above 0 in the model of page 113.)
then execute the code of ‘4.2.6 Maximizing the posterior’. Is that correct?
Thank you.
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UsernameUser100
Hello.
I’m in the middle of writing a paper using RSIE toolbox and always check RISE Toolbox Documentation Release 20230709 for reference. I have a question about the code of “4.2.6 Maximizing the posterior” on page 115 of the documentation.
What differences does it make to add 'data_demean' option in estimate(...)?
Do I need to add ‘data_demean' true in estimate(…,'data_demean',true,,‘data’ db, …) after I demean data (such as interest rate and inflation), which is db in estimate(...).
For Example (based on 4.2.5 Collecting and transforming the data on page 114)
d=fetch_fred({'CPALTT01USQ661S','BOGZ1FL072052006Q'}); db=struct(); db.P=log(d(1).series/d(1).series{-1}); db.R=d(2).series/100;
db.P=db.P-mean(db.P) %%% Subtracting the sample mean from data db.R=d(2).series/100-mean(db.P) %%%Subtracting the sample mean from data (In here, I assume that inflation and interest rate are 0 in steady state for simplicity, though I think interest rate is above 0 in the model of page 113.)
then execute the code of ‘4.2.6 Maximizing the posterior’. Is that correct?
Thank you.