Hi,

To comparing two versions of a dsge model should I consider initial value of the log posterior? I have to subtract it from marginal log-likelihood?

# Comparison with Marginal Density

You need to use the marginal data density, not the log posterior.

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Excuse me, lower marginal density value means better fit?

What’s the difference between LaplaceApproximation and ModifiedHarmonicMean?

Thank you so much for responding.

The higher the density, the better.

Please see Laplace approximation vs. Harmonic Mean Estimator

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Thank you very much, sir.

Excuse me again, Can i use marginal data density for comparing DSGE-VARs with various lambda too?

Thanks in advance.

Sorry, I mean the number oo_MarginalDensity shows are minus of real value? Marginal data density must be negative or not?

- I would estimate lambda in this case.
- It’s the log of a density, so it will be negative whenever the densities are smaller than 1. It’s not the case that it’s minus the density.