Hi Prof. Pfeifer and to all,

I have a theoretical question.

What Rules are there for setting initial values of shocks stderr at Bayesian estimation in Dynare?

Thank you,

Leonid.

# Initial values of shocks stderr

What do you mean with

?

Usually people start at the prior mean or mode.

Hi Prof. Pfeifer,

I have a theoretical question.

How to set **the correct prior mean** of stderr at Bayesian estimation for

some of the shocks, the earlier literature give less guidance.

Thank you,

Leonid

Please see

Thanks for your prompt reply, jpfeifer!