Comparing model

Dynare help (legacy posts)
1

Hello,

I am quite new with the bayesian methodology.
I am estimating the same structural model for the euro area and for the US. If the Log data density is -656.634738 for the US and Log data density is -443.546738 for the euro area, can I conclude that the model fits better the Us economy?

Thank you for helping me…

Best

2

Hi,

one usually looks at the higher likelihood when doing bayesian model comparison. in that case the EA model fits better

Best