I am estimating a RBC model with Bayesian techniques. I use the ustable version of DYNARE because the standard one gave problems with Brooks and Gelman (1998) diagnostics.
- I get Log data density [Laplace approximation] = 321.993362 with posterior maximization and after posterior mode calculation it is 322.301353.
Is this value ok?
Because I guess it should be far higher, isn’t it?
- Dynare gives me this warning after calculating the initial value of the log posterior and before starting the optimization procedure:
Initial value of the log posterior (or likelihood): 96.484
Warning: File ‘filename_optimal_mh_scale_parameter.mat’ not found.
What does this mean?
How could I build this file?
Could this be a reason why I get low value for the Log data density?