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Some Remarks on the Simulation Revolution in Bayesian Econometric Inference

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Author Info
Herman K. van Dijk () (Erasmus University Rotterdam)

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Abstract

Four remarks are made as a comment on Geweke's (1998) paper which deals with the use of simulation methods for Bayesian econometric models. After a personal remark on the introduction of importance sampling, the danger of simplistic application of Markov Chain Monte Carlo is indicated in the context of a partially identified model. The third remark refers to the fact that Bayesian inference using simulation is nowadays easier than classical inference in models with latent factors such as state space models, models with varying coefficients, limited dependent variables models, truncated regression models, Markovian trend and regime switching models. The final remark is a plea for the econometric integration of inference and decision-making using simulation.

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Publisher Info
Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 98-117/4.

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Date of creation: 29 Oct 1998
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Handle: RePEc:dgr:uvatin:19980117

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Web page: http://www.tinbergen.nl/

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  1. Michiel D. de Pooter & René Segers & Herman K. van Dijk, 2006. "On the Practice of Bayesian Inference in Basic Economic Time Series Models using Gibbs Sampling," Tinbergen Institute Discussion Papers 06-076/4, Tinbergen Institute. [Downloadable!]
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