Command: mode_compute in Dynare

[phuong.macro]

Hallo Leute

Can anyone help me how to declare the Bayesian method and the Maximum Likelihood Method (MLM) in Dynare?

I read Dynare Manual Version 4.4.3, so that I understand mode_compute=4 for MLM. On the other hand, mode_compute=6 for the Bayesian method?

Is that correct?

Thank you so much indeed

[jpfeifer]

Code: Select all

mode_compute

has nothing to do with Bayesian vs ML. It just determines the optimizer used for finding the mode of the likelihood or posterior. What determines whether your estimation is Bayesian or not is whether you specify prior distribution in your

Code: Select all

estimated_params

block. No prior, no Bayesian estimation.

[phuong.macro]

ah I got it

Thank you so much indeed for your quick answer Prof. Pfeifer