I try to estimate interest rate rules via Bayesian DSGE, but the sd keeps returning me “NaN” and when I fix one of the lines other lines get wrong.
I want to estimate the parameters as follows:
estimated_params;
gamma_R, beta_pdf, 1, 0.15;
gamma_Pie, normal_pdf, .5, 0.35;
gamma_Y, gamma_pdf, 0.5, 0.001;
gamma_S, beta_pdf, 0.4, 0.05;
gamma_B, inv_gamma_pdf, 0.05, 0.15;
end;
Dynare tells me that the error is in “gamma_S”, but when I can fix this line, the other lines get wrong and when I try again, all the sd are “NaN”. How to proceed in this case? By pointing out that I am modifying the deviations and the distributions.