Dear all Dynare User,
I’m trying to compare the models via model comparision command, model_comparision m1_R1 m0_R1. I already got the result, which I display as following. I’m not quite sure that do I can conclude the result by using the Posterior Model Probability, or I need to compute the posterior odd ratio by myself. If I need to compute the posterior odd ratio, the formulation is (prior of m1_R1/prior of m0_R1)*(log margimat data density of m1_R1/log margimat data density of m0_R1 ), right???
Model Comparison
Model m1_R1 m0_R1
Priors 0.500000 0.500000
Log Marginal Density -450.472967 -211.332105
Bayes Ratio 1.00000072037201844024017000000000000000000000000000000000000000000000000000000000000000000000000000000000000000.000000
Posterior Model Probability 0.000000 1.000000
Thank you very much
Kornchanok