endogenous_prior_restrictions

[agonzago]

Hi all,

Does any one know how to use the function endogenous_prior_restrictions? I looked at the manual but I could not find information. I would like to add prior info about the size of the fiscal multipliers.

Andres

[jpfeifer]

The

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endogenous_prior_restrictions

function is not intended for the end users. Rather, it will be called within

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dsge_likelihood

based on the specifications of the

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irf_calibration

and

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moment_calibration;


blocks. The latter are documented in the manual and an example is at https://github.com/DynareTeam/dynare/blob/master/tests/gsa/ls2003a.mod
The way it works internally is that any parameter draw that is inconsistent with this specification is discarded, i.e. assigned a prior density of 0. Note that you won't be able to do model_comparison in this case, because the prior density will not integrate to 1.
We will be expanding the documentation, see https://github.com/DynareTeam/dynare/issues/1318