State space and logarithm scale of data
Posted: Wed Jul 01, 2009 9:10 pm
Dear Forum
I'd like to ask several basic questions about the observation equation of state space. Is there a must of using variable in logarithm scale on observation equation of SS? such as Log(Passanger), Log(GDP), etc. Why? Does the answer related to the Gaussian white noise process?
thanks in advance..
I'd like to ask several basic questions about the observation equation of state space. Is there a must of using variable in logarithm scale on observation equation of SS? such as Log(Passanger), Log(GDP), etc. Why? Does the answer related to the Gaussian white noise process?
thanks in advance..