Dear professor jpfeifer,
Sorry for bothering you again. I estimate a DSGE model using Bayesian method and the mod all run well. But I find the simulated values of output(y) using posterior mean have some negative values!! We know the level of output obvious can not be negative. so there must be something serious wrong but I can not find. I updata my mod file and hope you can help me, always thank you, professor.
eleven11.mod (19.0 KB)