What values are decision rules in oo-.dr.ys based on?

[jkh]

Hi,
I am a novice to dynare, so my questions could be low quality.

Sorry about that.

My question is on what values decision rules in oo-.dr.ys obtained after bayesian estimation are based.

Mean, mode, median for posterior parameter estimates or whatever?


Thank you in advance for reply.

[jpfeifer]

None of them. After Bayesian estimation the parameters in M_.params are set to the posterior mean. But the steady state in oo_.dr.ys is still based on the last MCMC draw. To set it to the value at the posterior mean, you need to run

Code: Select all

stoch_simul

again after estimation.