Referring to the situation in Question 2, one might think that an informative prior would outweigh the

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Referring to the situation in Question 2, one might think that an informative prior would outweigh the effect of the increasing sample size.With respect to the Bayesian analysis of the linear regression, analyze the way in which the likelihood and an informative prior will compete for dominance in the posterior mean. The following exercises require specific software. The relevant techniques are available in several packages that might be in use, such as SAS, Stata, or LIMDEP. The exercises are suggested as departure points for explorations using a few of the many estimation techniques listed in this chapter.

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Econometric Analysis

ISBN: 978-0130661890

5th Edition

Authors: William H. Greene

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