Hi Gianni,

I changed prior_bounds.m so that if, in estimation, you set option prior_trunc=0, the boundaries are set to what is natural given the prior shape.

I prefer that you set prior_trunc=0, than changing the default in Dynare.

All the best,

Michel

giovanni.lombardo@ecb.int wrote:

Hi Michel,

some time ago you mentioned that the automatic correction of the parameters bounds in estimation in Dynare was a controversial issue. It is still giving me big problems in estimating the NAWM-FIN. (it crashes even if the initial value is the mode!!)

At every distribution update I have to replace dynare_estimation.m with my version where I comment out your replacement of the bounds. And I have to do so to all installations of Dynare (e.g. of my co-authors etc.)

Would it be possible for you in the next update to set it as an optional thing (e.g. options_.correct_bounds)?

Thanks and best regards

Gianni

PS: I have already an entry in the forum for this issue.

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