How to deal with dynamic parameters?

[rain123]

I am currently trying to replicate a paper. There are some dynamic parameters where marginal and prior distributions are provided. I had the question that when plugging the parameters in dynare, what should I be using? Should I use the mode/mean of the posterior? I am new in Dynare and I would really appreciate your help.

[jpfeifer]

There is no general answer. See e.g.

Should we use posterior mean or posterior mode

Hi, the mean and the mode of the posterior distribution are just two measures of the central tendency of the distribution. If the posterior distribution of a parameter is normal, the mean, the mode and the median will be the same. However, typically the exact distribution of the posterior is not known. In this case you have to pick a measure. Usually with irregular posteriors I would go with the mode. To see the problem consider a binomially distributed posterior with p=0.6. In this case, 60% of…