Posterior predictive checks

Estimation ML/Bayesian estimation
4

That quote indicates that you have to simulate the model for a given posterior draw and then compute the unconditional second moments. The easiest way to do this is most probably to use the

posterior_function

command and within the posterior function call

stoch_simul

with the respective options for simulation. An example can be found at tests/prior_posterior_function · master · Dynare / dynare · GitLab