### Auxiliary vbles in stochastic simulation environment

Posted:

**Thu Oct 25, 2012 8:37 am**I’ve made a model from a series of (earlier estimated) equations with some common parameter names and common rhs variables:

X1= …..

X2=……

X3=……

X4=……

I then construct an auxiliary variable from that system by inserting the text

C1 = (rhs of X1 equation)/ (rhs of X2 equation)

in the equation box. Then just to check matters I created a second (seemingly identical variable):

C2 = X1/X2

When I dynamically simulate the model (with bootstrap and parameter uncertainty options allowed), I find to my surprise that C1 doesn’t equal C2. This makes me confused as to the best way to construct auxiliary variables in the model simulation option.

X1= …..

X2=……

X3=……

X4=……

I then construct an auxiliary variable from that system by inserting the text

C1 = (rhs of X1 equation)/ (rhs of X2 equation)

in the equation box. Then just to check matters I created a second (seemingly identical variable):

C2 = X1/X2

When I dynamically simulate the model (with bootstrap and parameter uncertainty options allowed), I find to my surprise that C1 doesn’t equal C2. This makes me confused as to the best way to construct auxiliary variables in the model simulation option.