Andrea Luciani is a Technical Advisor for the Directorate General for Economics, Statistics and Research at the Bank of Italy, and co-author of the bimets package.

Introduction
In this post, I show how to analyze the forecast error for a Structural Equation Model (SEM) by means of a stochastic simulation, …

<img src=’ https://rviews.rstudio.com/2022/02/07/sem-stochastic-simulation-and-optimal-control/index_files/figure-html/plot_stochsimulate-1.p