I have ecountered a problem when I wanted to do the Bayestion estimation. Would you please give some advice? Thank you very much !
Some variable’s steady state in my model does not have a analytic solution, so I have to use the numerical solution. However, in the process of finding the numerical solution, I should use the parameter (e.g. phiUU) that will be estimated. So if this phiUU change during the estimation, the variable’s steady state will change as well. But as it is in numerical form, it could not change during the estimation.
In this case, how could I run the Bayesian estimation?(associated documents are attached)
Any reply will be appreciated. Thank you!