IDEAS home Printed from https://ideas.repec.org/a/prg/jnlaop/v2012y2012i2id365p77-92.html
   My bibliography  Save this article

A Comparison of Classical and Bayesian Probability and Statitics (2)

Author

Listed:
  • Petr Hebák

Abstract

Statistics has been developing for almost 250 years - since the publication of an essay which included one theorem called Bayes´ after the author. This whole period (since 1763 to this day) has been accompanied by a duel between the supporters of a subjective concept of probability and those who refuse everything but a purely objective concept of probability as well as statistics. While the 18th and 19th centuries accepted the importance of the subjective (let us say Bayesian) way of thinking for the development of probability and statistics without a problem, in the 20th century the classic (frequentist) way took over and has been dominant in teaching and textbooks to this day. Only in the second half of the 20th century did the situation begin to change slowly. Reasons for that are partly described in the present article, but arguments and simple examples supporting the Bayesian way in comparison with the classic one are clear and generally respected worldwide. Unsuspected new computing possibilities have caused an explosive development of Bayesian statistics, which has infiltrated almost all the areas of statistics and a number of other scientific fields. It is not possible to expect a retreat of the different philosophical or pedagogical positions of the fighting schools of thought (even though it is really needed), but the use of advantages of both the approaches is methodologically not only possible, but even expected. Part of the teaching of statistics must be prepared for these changes, but it has not been the case in the Czech Republic at all so far.

Suggested Citation

  • Petr Hebák, 2012. "A Comparison of Classical and Bayesian Probability and Statitics (2)," Acta Oeconomica Pragensia, University of Economics, Prague, vol. 2012(2), pages 77-92.
  • Handle: RePEc:prg:jnlaop:v:2012:y:2012:i:2:id:365:p:77-92
    as

    Download full text from publisher

    File URL: http://www.vse.cz/polek/download.php?jnl=aop&pdf=365.pdf
    Download Restriction: free of charge

    File URL: http://www.vse.cz/aop/365
    Download Restriction: free of charge

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. L. Randall Wray & Stephanie Bell, 2004. "Introduction," Chapters,in: Credit and State Theories of Money, chapter 1 Edward Elgar Publishing.
    2. Philippe Robert-Demontrond & R. Ringoot, 2004. "Introduction," Post-Print halshs-00081823, HAL.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    subjective probability; frequentist statistics; classical and Bayesian approach and thinking; Bayes´ theorem; point estimation; prior and posterior distribution; Bayesian Credible interval; hypothesis testing;

    JEL classification:

    • C82 - Mathematical and Quantitative Methods - - Data Collection and Data Estimation Methodology; Computer Programs - - - Methodology for Collecting, Estimating, and Organizing Macroeconomic Data; Data Access
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:prg:jnlaop:v:2012:y:2012:i:2:id:365:p:77-92. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Frantisek Sokolovsky). General contact details of provider: http://edirc.repec.org/data/uevsecz.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.