Problem with results of bayesina estimation

Estimation ML/Bayesian estimation
1

Dear Professor Pfeifer,

After bayesian estimation of the model, I got negative value of parameter rhoy (e.g. -0.05) in Taylor Rule which is written as
exp( R ) = R_ss^(1 - rhoR )
* (exp(R(-1)))^rhoR
* (exp(dp)/pi_ss)^( rhopi*(1-rhoR) )
* (exp(y)/exp(y(-1)))^( rhoy*(1-rhoR) )
* (1+e_R);
I was wondering if it’s OK to accept this result as I seldom see negative value of this parameter in other papers, and how should I interpret this ?

Thank you for your time.
Best regards

2

That is impossible to tell. You are the model builder and should know whether that value makes sense in the context of your model. If it does not, use a prior that only allows positive values.