Inverse gamma prior type

Dear all,

I have been replicating Adolfson et al. (2007). Now I have realized that there are two types of inverse gamma distributions in dynare (inv_gamma_pdf, inv_gamma2_pdf). If it is clear that the standard errors of shocks have inv_gamma_pdf prior, then I am unsure on the type priors for markup and susbstitution elasticity parameters, which also have inverse gamma distributions in the paper. What do you think?


From @stepan-a’s “Prior distributions in Dynare” (

Note that the sole difference between an inverted gamma distribution and the inverted gamma distribution of type II is in the parameterization of the shape and scale parameters. If the prior distribution is defined by its first and second moments, this difference does not matter.

Note that a more recent version of this document is available on my website ( or directly from here.


Thank you very much!

Thank you! Appreciated