standard deviation is as huge as 25,why
Posted: Mon May 06, 2013 4:38 pmHello!
when i do bayesian estimation,i set a prior value for the standard deviation of shocks,for example,0.5 for technology shock.
However,when the result comes out, the posterior value of the standard deviation of technology shock is as huge as 25!
Is it possible that standard deviation can be as large as this?
are their any possible reasons and solutions?
Many thanks!
when i do bayesian estimation,i set a prior value for the standard deviation of shocks,for example,0.5 for technology shock.
However,when the result comes out, the posterior value of the standard deviation of technology shock is as huge as 25!
Is it possible that standard deviation can be as large as this?
are their any possible reasons and solutions?
Many thanks!