Understanding the Bayesian Computation of Smets Wouters (2007)

Estimation ML/Bayesian estimation
10
  1. For the RBC model, we have
estimated_params;
rhog, beta_pdf,0.7,0.1;
rhoz, beta_pdf,0.7,0.1;
stderr eps_z, inv_gamma_pdf, 0.01, 0.1;
stderr eps_g, inv_gamma_pdf, 0.01, 0.1;
end;

Those are the only estimated parameters. Everything else is fixed.
2. The sign can be positive or negative. See

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