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Beveridge Nelson in real-time

Posted: Tue May 06, 2014 9:26 am
by eca05jpm
Hi all,

I've been using the BNdecomp add-in to calculate the Beveridge-Nelson decomposition - very handy and great that it is available.

But I am interested in looking at it in real time - the add-in requires de-meaned data and nobody knows what the sample mean will be in real-time.

So I thought it would be interesting to set it up in state-space an compare filtered estimates with smoothed.

Before I try it, has anyone done this before? I wondered whether the add-in might make use of state space?

And if anyone has done it for the Blanchard-Quah decomp, that would be great to see too.

Best,

Jamie