An Introduction to Bayesian Inference in Spatial Econometrics
18 Pages Posted: 22 Aug 2008
Date Written: July 24, 2008
This tutorial is designed to introduce readers to Bayesian variants of the standard SAR and SEM models that are the most widely used and applied models in spatial econometrics. Particular attention is paid to the mathematical derivations required to obtain the full conditional distributions required for Gibbs sampling. The models are derived using diffuse as well as natural conjugate priors for the parameters.
Keywords: Bayesian paradigm, Bayesian spatial econometrics
JEL Classification: C11, C21
Suggested Citation: Suggested Citation