mode_compute = prior
Created by: MichaelSpece
The bug is that using mode_compute = prior, the following error is thrown:
ERROR: …: syntax error, unexpected PRIOR
(This behavior is undocumented.)
The enhancement would be to make prior an additional possible case, as a last resort for obtaining a positive definite Hessian. Currently the second to last case in dynare_estimation_1 is
case 'prior'
hh = diag(bayestopt_.p2.^2);
That code should be replaced by
case 'prior'
hh = diag(1./bayestopt_.p2.^2);
The lexical parser would need to be revised accordingly and it would need to be documented that prior could not be used as a function name value for mode_compute.
Suggested labels: enhancement, documentation, bug, estimation