# Issues with estimation MCMC method

**URL:** <https://forum.dynare.org/t/issues-with-estimation-mcmc-method/16950>\
**Category:** ML/Bayesian estimation\
**Created:** [18 November 2020 07:07 UTC](https://forum.dynare.org/t/issues-with-estimation-mcmc-method/16950 "2020-11-18T07:07:45Z")\
**Posts on this page:** 1\
**Showing post:** 2

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**Author:** ![jpfeifer](https://forum.dynare.org/user_avatar/forum.dynare.org/jpfeifer/32/5044_2.png) [@jpfeifer](https://forum.dynare.org/u/jpfeifer)\
**Post date:** [18 November 2020 09:15 UTC](https://forum.dynare.org/t/issues-with-estimation-mcmc-method/16950/2 "2020-11-18T09:15:35Z")

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1. The datafile is missing.
2. Please use a steady\_state\_model-block for your analytical steady state.
3. Your observable is non-mean 0 in the model, but mean 0 in the data. You need to specify a proper observation equation. See [Pfeifer(2013): “A Guide to Specifying Observation Equations for the Estimation of DSGE Models”](https://drive.google.com/file/d/1r89OU5OE3CBa6tOlj6l3hNVWEaRH5Anv/view?usp=sharing).
4. See

> [@Demean the series or not](https://forum.dynare.org/t/demean-the-series-or-not/11130/2):
>
> First of all (as always): do not use the two-sided HP filter for estimating DSGE models. See Pfeifer (2013): “[A Guide to Specifying Observation Equations for the Estimation of DSGE Models](https://drive.google.com/file/d/1r89OU5OE3CBa6tOlj6l3hNVWEaRH5Anv/view?usp=sharing)". If you must, use the one-sided HP filter Depending on the filter you use, your data will be mean 0 (true for the one-sided and two-sided HP filter). Prefiltering in this case is not needed, because the empirical mean you subtract will be 0. Thus prefilter=1 will be harmless, but useless.

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