Hi everybody,

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.

In dynare_estimation_1 at 394

In dynare_estimation at 62

In maint_bayes_newdata at 263

In dynare at 132

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?

Thank you

Alice