Because I belive that variance of shock is always positive number and it ranges with 0.001 to 10, then I give a uniform as the prior distribution for variance of shock as following
stderr eps_muzhat,0.001,10, uniform_pdf, ;
But Dynare does not work
Can anyone explain for that whether I use the incorrect syntax?
You need to provide mean and standard deviation. In your case, it would simply be
stderr eps_muzhat,uniform_pdf, (10+0.001)/2,(10-0.001)/sqrt(12);
Or you can skip the prior mean and standard deviation, and write instead:
stderr eps_muzhat, uniform_pdf, , , 0.001, 10;
It is imperative define a uniform prior with the lower and upper bounds .Obviously this only works with the uniform prior. All this is explained in the reference manual.
Thank you so much Prof. @jpfeifer
Now it runs. At the beginning I misunderstood the syntax
Thank you much for your another suggestion about syntax
It is also very convenient