Dear friends, I have a question. When I estimate the parameters using Bayesian estimation. If I change some parameter look at the impulse response and the change in welfare. Do I need to re-estimate all the parameters. Or directly adjust the parameters to see the results.
It all depends on the experiment you are trying to conduct. Do you want to do comparative statics?
I want to change the value of a parameter to see the impulse response and the variance of each variable. Whether changing parameter values requires re-estimation of other parameters
No, usually when you do such a counterfactual for a previously estimated parameter, you keep all other parameters at their estimated values and only vary the one parameter.
Thank you very much for your answer