Hi,
I just noticed that the default value of prior_trunc is set to 1e-10, which is different from 1e-32 stated in the manual. For the beta distribution, the lower bound with prior_trunc=1e-10 can be a bit higher than I expected. I can always set prior_trunc = 0 but is there any other model features that might affect the default value of prior_trunc? The following is my test code. The data is a simulated one. I am using Dynare 5.1 on MacOS 12.4. Thanks!
testdata.mat (1000 Bytes)
parameters rho;
var a Da;
varexo ea;
model(linear);
a = rho*a(-1) + ea;
Da = a;
end;
estimated_params;
rho, 0.01,,, beta_pdf, 0.5, 0.1;
stderr ea, 0.05, ,, inv_gamma_pdf, 0.1, 0.1;
end;
varobs Da;
estimation(datafile='testdata.mat',mode_compute=6,mh_replic=100000,mh_nblocks=1,mh_jscale=0.25,mh_drop=0.33);