I understand dynare calculates and reports the marginal likelihood after Bayesian estimation. However, is there any way it can calculate the marginal likelihood of a model where the distributions of model parameters are known ?
Eg suppose I estimate a simple three-equation model with an IS curve, a Phillips curve and a Taylor, and Dynare reports the marginal likelihood to be 100… How can I calculate the likelihood of a model variant with a different Taylor rule (while keeping the IS and Phillips curves to be exactly the same) WITHOUT re-estimating all the model parameters? Eg example, a variant that allows interest rate to react on inflation only, such that the parameter on output gap is set to zero…
Any advice would be very appreciated. Thank you!