<listitem><para>Discard higher order terms when iteratively computing simulations of the solution, as in <xreflinkend="kim-kim-schaumburg-sims_2008"/>.</para></listitem>
</varlistentry>
<varlistentryid="partial_information">
<term><option>partial_information</option></term>
<listitem><para>Computes the solution of the model under partial information, along the lines of <xreflinkend="pearlman-currie-levine_1986"/>. Agents are supposed to observe only some variables of the economy. The set of observed variables is declared using the <xreflinkend="varobs"/> statement. Note that if <xreflinkend="varobs"/> is not present or contains all endogenous variables, then this is the full information case and this option has no effect.</para></listitem>
</varlistentry>
</variablelist>
</refsect1>
...
...
@@ -2719,6 +2723,9 @@ stoch_simul(linear,irf=60) y k;
<para>
<command>varobs</command> lists the name of observed endogenous variables for the estimation procedure. These variables must be available in the data file (see <xreflinkend='estimation'/>).
</para>
<para>
Alternatively, this command is also used in conjunction with the <xreflinkend="partial_information"/> option of <xreflinkend="stoch_simul"/>, for declaring the set of observed variables when solving the model under partial information.
</para>
<para>
Only one instance of <command>varobs</command> is allowed in a model file. If one needs to declare observed variables in a loop, the macroprocessor can be used as shown in the second example below.
</para>
...
...
@@ -4835,5 +4842,32 @@ plot_conditional_forecast(periods = 10) e u;
</biblioentry>
<biblioentryid="pearlman-currie-levine_1986"xreflabel="Pearlman, Currie and Levine (1986)">
<bibliosetrelation="article">
<authorgroup>
<author>
<surname>Pearlman</surname>
<firstname>Joseph</firstname>
</author>
<author>
<surname>Currie</surname>
<firstname>David</firstname>
</author>
<author>
<surname>Levine</surname>
<firstname>Paul</firstname>
</author>
</authorgroup>
<pubdate>1986</pubdate>
<title>Rational expectations models with partial information</title>