Kleibergen, Frank; van Dijk, Herman K. - Faculteit der Economische Wetenschappen, Erasmus … - 1997
Diffuse priors lead to pathological posterior behavior when used in Bayesian analyses of Simultaneous Equation Models (SEMs). This results from the local nonidentification of certain parameters in SEMs. When this, a priori known, feature is not captured appropriately, an a posteriori favor for...
