Thanks so much for your always kind reply. I did mode_check now but there is no green (log-like kernel) or blue line (log-post) in graph of my attached file and the value is surprisingly large. I read “An Introduction to Graphs in Dynare” and it sounds that there is something wrong with my prior distribution assumption. How shall I deal with it? My assumption about prior dist is as follows:

```
......
/E3 neutral Tech.
muzR=(1-rhomuz)*STEADY_STATE(muzR)+rhomuz*muzR(-1)+muz_eps_s/100+muz_eps_n4(-4)/100+muz_eps_n8(-8)/100;
//E4 preference shock
zetaR=(1-rhozeta)*STEADY_STATE(zetaR)+rhozeta*zetaR(-1)+zeta_eps_s/100+zeta_eps_n4(-4)/100+zeta_eps_n8(-8)/100;
.................
//E8 unemployment benefits shock
DR=(1-rhoD)*STEADY_STATE(DR)+rhoD*DR(-1)+D_eps_s/100+D_eps_n4(-4)/100+D_eps_n8(-8)/100;
//////////////////////////////
//measurment equations////////
/////////////////////////////
[name='Observation equation output']
dy=yR-yR(-1)+muR+y_eps_me/100;
[name='Observation equation consumption']
dc=cR-cR(-1)+muR;
[name='Observation equation investment']
di=iR-iR(-1)+muR+upsilonR-upsilonR(-1);
.......
[name='Observation equation capital utilization']
duk=ukR-ukR(-1);
End;
estimated_params;
alfa,0.2366,,,BETA_PDF,0.33,0.2; % capital share
sigma,0.5570,,,BETA_PDF,0.5,0.2; %matching function share of unemp
lambda,1.4256,0.9,,GAMMA_PDF,1.19,1; % steady state price markup
b,0.8320,,,BETA_PDF,0.5,0.1; % habit formation in consumption
xi,0.5841,,,BETA_PDF,0.68,0.2; % Calvo prices
Spp,13.6684,1,,GAMMA_PDF,7.5,30; % second derivative of invest. adjustment costs
sigmaa,0.0760,0.001,,GAMMA_PDF,0.32,0.3; %capacity utilization costs
rhoR,0.8555,,,BETA_PDF,0.5,0.2; % interest rate smoothing
rpi,1.3552,1.0001,,GAMMA_PDF,1.69,.3; % coefficient on infla
ry,0.0359,,,GAMMA_PDF,0.08,0.1; % coefficient on GDP
rhomupsi,0.7279,,,BETA_PDF,0.5,0.2; % invest. tech. smoothing
rhomuz,0.1,,,BETA_PDF,0.5,0.2; % neutral tech. smoothing
rhoA,0.1,,,BETA_PDF,0.5,0.2; % station. tech. smoo.
rhoD,0.5,,,BETA_PDF,0.5,0.2; % unemp. benef. smoo.
rhog,0.1,,,BETA_PDF,0.5,0.2; % gov. expen. smoo.
rhoups,0.1,,,BETA_PDF,0.5,0.2; % station. invest. tech. smoo.
rhozeta,0.1,,,BETA_PDF,0.5,0.2; % prefer. shock smoo.
DSHARE,0.6682,,,BETA_PDF,0.5,0.2; % unemp. benef. as share of w (replacement ratio)
theta,1,0.01,,GAMMA_PDF,0.94,0.5; % inverst frisch labor elasticity
etah,0.5570,,,BETA_PDF,0.5,0.2; % workers' hours bargaining power
stderr R_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr R_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr R_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr muz_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr muz_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr muz_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr mupsi_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr mupsi_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr mupsi_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr A_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr A_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr A_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr D_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr D_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr D_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr g_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr g_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr g_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr ups_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr ups_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr ups_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr zeta_eps_s,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr zeta_eps_n4,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr zeta_eps_n8,0.1,0.01,3,INV_GAMMA_PDF,0.1,2;
stderr y_eps_me,0.001,0,1,uniform_pdf,0.01,0.01;
stderr w_eps_me,0.001,0,1,uniform_pdf,0.01,0.01;
end;
varobs dy dc di dh dg dip dunemp df dtfp dw dpi dR duk;
estimation(datafile=us_data,xls_sheet=delta,mh_drop=0.2,mh_replic=5000,mh_jscale=0.2,
mode_check);
```

By the way, those observables’s values are not percentage but real one.

untitled.pdf (9.96 KB)