Choosing Priors for ML-Estimation of DSGE Models

[jpfeifer]

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

Choosing an appropriate standard deviation for prior

I wonder if it is possible for you to answer my following question about the estimation of the parameters in DSGE models. Due to a debate between me and some of my colleagues about the selection of proper standard deviation of prior for an specific parameter, I claimed that this value for standard deviation is subjective and in a Pdfs such as Gamma distribution, it is not really important to be 0.1 or 0.01 or 0.001. In other word, I claimed that if I could make a Gamma distribution with a sta…