Choosing Priors for ML-Estimation of DSGE Models

Hello there,

I want to estimate the parameters of a very specific DSGE model and therefore need to specify the priors. Inserting values from the literature for the prior mean and choosing the type of distribution function seems plausible to me. But how do I choose the standard deviation, since I can’t find values for many parameters in the literature? Are there any rules/best practices that I need to follow?

Thank you!

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Please search the forum. This has been discussed a few times before, e.g.

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