RE.mod (3.1 KB)
data_detr.xlsx (14.6 KB)
Here is my modified file. I also notice that for MCMC convergence diagnostic, red line and blue line of kp,SE_eq diverge in the middle sampling which is strange, though they finally converge.
For observation equation, output was detrended, inflation and nominal interest rate were demeaned, following your “A Guide to Specifying Observation Equations for the Estimation of DSGE Models” chp4.2
