Moments after estimation

Stochastic simulations
1

I estimated my DSGE model with measurement errors calibrated. In “shocks block” I only included measurement errors, variance of another shocks (structural) are estimated by especificating priors distributions in estimated_params block.

My question are:

  1. Will results of estimation (posteriors of parameters and shocks decomposition) change when I include structural shocks in “shocks block”?

  2. I want to compute variance of variables evaluated after estimation, so my question is what happens when I don’t specify variance of structural shocks in “shock block”? Does dynare assume some especifical value for these, like 1, for example?

2

Sorry, but I do not understand the particular setup. Generally, what you set in the shocks-block is permanent. If you set any error (measurement or structural) in the shocks-block and you then do not estimate this object, its value will be fixed at the value set before estimation. In contrast, if you did not specify anything for an exogenous variable, its standard deviation is assumed to be 0.