Dear Johhanes,
As Lubik 2004 AER paper,
if there is only one key parameter that matters whether the model is indeterminacy or determinacy, then we need adjust the prior probability of determinacy to about 0.5 to compare if the data suppot indeterminacy model or determinacy model(this key parameter prior is set to cover both indeterminacy and determinacy region), am I right? In this paper , they get the value=0.527.
Could I ask if Dynare can calculate the value prior probaliblity of determinacy? Could you give me some advice how I can get this number?
Best regards,
Huan