Open Access. Powered by Scholars. Published by Universities.®
Articles 1 - 2 of 2
Full-Text Articles in Business
An Exercise In Bayesian Econometric Analysis Probit And Linear Probability Models, Brooke Jeneane Siler
An Exercise In Bayesian Econometric Analysis Probit And Linear Probability Models, Brooke Jeneane Siler
All Graduate Plan B and other Reports, Spring 1920 to Spring 2023
The aim of this paper is to carry out a Bayesian econometric application. Using a dataset obtained from Wooldridge's Introductory Econometrics textbook, each step in conducting a Bayesian econometric analysis is performed and explained. For illus- trative and comparative purposes, two limited dependent variable regression forms were used: a linear probability model and a probit model. This paper covers the ben- ets of Bayesian methodology, including selection of distributions for the prior and the likelihood. Additionally, a series of diagnostic checks are done after the models are computed.
Bayesian Inference: Probit And Linear Probability Models, Nate Rex Reasch
Bayesian Inference: Probit And Linear Probability Models, Nate Rex Reasch
All Graduate Plan B and other Reports, Spring 1920 to Spring 2023
The following paper analyzes the benets of Bayes' theorem in applied econo- metrics. This is accomplished by demonstrating each step in conducting Bayesian inference. This includes the prior selection, the likelihood function, posterior simula- tion, and model diagnostics. To provide a concrete example I replicate, by Bayesian inference, the main model of Blau, Brough, and Thomas.(2013) This model is found in their research paper titled, Corporate lobbying, Political Connections, and the Bailout of Banks. The analysis focuses on two dierent forms of limited dependent variable regressions, the probit and linear probability model. The benets of Bayesian econo- metrics were extensive …