Step one: I calibrated a model, and it worked. Step two: After that, I did an estimation, and it also worked. Step three: I used the estimated posterior mean to replace the calibrated parameters in Step one, and the model did not work. It said that the BK conditions are not satisfied. That is kind of very weird. I could not figure this out. Why does this happen?
Thank you Prof. Pfeifer for answering my question. I would like to do a counterfactual analysis. I want to change the value of a calibrated parameter , and use the estimated values for other parameters. However, when I chose the posterior mean to do this, the BK conditions are not satisfied. Based on this fact, Can I still do a counterfactual analysis? In other words, Can I use a different way to do the counterfactual analysis.