Posterior mode/posterior mean

[flumas22]

Hi,

Does Dynare use posterior mode or posterior mean of parameters in command stoch_simul after estimation?


Thanks for answer.

Jan

[jpfeifer]

From the manual:

After running estimation, the parameters M_.params and the variance matrix M_.Sigma_e of
the shocks are set to the mode for maximum likelihood estimation or posterior mode computation
without Metropolis iterations.
After estimation with Metropolis iterations (option mh_replic > 0 or option load_mh_file
set) the parameters M_.params and the variance matrix M_.Sigma_e of the shocks are set to the
posterior mean.

It's the mode for ML and the mean for Bayesian estimation.