ISSN:
1435-8921
Keywords:
Key words: Markov chain Monte Carlo (MCMC)
;
conditional predictive ordinate (CPO)
;
Bayes factor
;
Rotterdam model
;
JEL classification: C11
;
D12
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract. The paper introduces Bayesian inference into a demand model. This allows us to test for the negativity condition of the substitution matrix which is difficult to handle directly in the traditional approach. To illustrate the Bayesian inference procedures, we estimate the Rotterdam model and test the demand properties using Japanese data. The empirical results show the importance of specifically considering negativity in demand analysis.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s001810050052
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