The manual (dynare.org/manual/index_31.html) tells us that ms_estimation command has coefficients_prior_hyperparameters option that equals by default to [1.0 1.0 0.1 1.2 1.0 1.0]. What do "tightness for A0 and A+ " and "relative tightness for A+ " mean (first and second hyperparameters)? Are these standard deviations? And is there needed any normalization of data or Dynare does this by itself?
Thank you in advance