Hello people,

I have two shocks in a model which I will estimate using Bayesian method. These two shocks are uncorrelated to each other.

But I want to put a restriction that standard deviation of one shock is some multiple of other. How can I do this?

Is the multiple a fixed given number?

Yes Professor.

As of now, I am estimating standard normal errors with mean zero and standard deviation 1 (by having very strict priors). In the model equation, I multiply these errors by numbers (which are like parameters) and I restrict these parameters. This seems to be working.

Yes, that would be the way to go.