Dear All,

I’m trying to check the identification of the priors of the model I’m going to estimate. I found this message as results of the test for prior mean (I used identification command):

==== Identification analysis ====

Testing prior mean

WARNING !!!

The rank of H (model) is deficient!

```
bh is not identified in the model!
[dJ/d(bh)=0 for all tau elements in the model solution!]
```

WARNING !!!

The rank of J (moments) is deficient!

```
bh is not identified by J moments!
[dJ/d(bh)=0 for all J moments!]
```

Monte Carlo Testing

Testing MC sample

All parameters are identified in the model (rank of H).

All parameters are identified by J moments (rank of J)

What is the main interpretation? Is there an identification problem? If I calibrate (not estimate) bh, I don’t have anymore this problem. But in case of estimation of the DSGE using bh estimated, what is the main issue of my estimation? Lack of identification? Do I need to check some other priors to avoid problems for bh?

Thanks for help!