First thank you for your helpful guidance last time in the forum.
I have a question, does the ‘identification’ command in Dynare only provides local identification test or both local and global identification test?
Look forward to hearing from you.
All identification checks for DSGE models tend to be local as there is no easy way to check global identification. What Dynare can do is sample repeatedly from the prior to check local identification at various points in the parameter space to get an indication of whether identification holds globally.