Bayesian Methods in Econometrics

This consultation deals with the Bayesian approach to econometric analysis. It is based on subjective probability methods of maximizing utilization of both the prior information and observations of a given process. Bayesian methods are generally used in the theory and practice of econometrics and included in the curriculum of master programs of the leading world universities. The advantage of using the Bayesian approach (in comparison with the traditional one) may be particularly seen in a higher precision of statistical inference when dealing with small samples what is typical in econometric modeling