Commit 34fb9f1c authored by Johannes Pfeifer 's avatar Johannes Pfeifer
Browse files

Clarify treatment of measurement error and correlations in manual

parent 0311c4ad
......@@ -2158,7 +2158,7 @@ Specifies the correlation of two variables.
In an estimation context, it is also possible to specify variances and
covariances on endogenous variables: in that case, these values are
interpreted as the calibration of the measurement errors on these
variables. This requires the @code{var_obs}-command to be specified before the @code{shocks}-block.
Here is an example:
......@@ -3747,14 +3747,14 @@ alternatives:
@item stderr @var{VARIABLE_NAME}
Indicates that the standard error of the exogenous variable
@var{VARIABLE_NAME}, or of the observation error associated with
@var{VARIABLE_NAME}, or of the observation error/measurement errors associated with
endogenous observed variable @var{VARIABLE_NAME}, is to be estimated
@item corr @var{VARIABLE_NAME1}, @var{VARIABLE_NAME2}
Indicates that the correlation between the exogenous variables
@var{VARIABLE_NAME1} and @var{VARIABLE_NAME2}, or the correlation of
the observation errors associated with endogenous observed variables
@var{VARIABLE_NAME1} and @var{VARIABLE_NAME2}, is to be estimated
the observation errors/measurement errors associated with endogenous observed variables
@var{VARIABLE_NAME1} and @var{VARIABLE_NAME2}, is to be estimated. Note that correlations set by previous @code{shocks}-blocks or @code{estimation}-commands are kept at their value set prior to estimation if they are not estimated again subsequently. Thus, the treatment is the same as in the case of deep parameters set during model calibration and not estimated.
@item @var{PARAMETER_NAME}
The name of a model parameter to be estimated
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