Bayesian Linear Estimation of Okun Coefficient for Romania: Sensitivity to Priors

KORI YAHIA, Abdellah (2018): Bayesian Linear Estimation of Okun Coefficient for Romania: Sensitivity to Priors. Published in: The Romanian Economic Journal No. Year XIII, no. 38 (December 2010): pp. 53-65.

Abstract

I use the Bayesian approach in order to derive an estimation of Okun coefficient for Romania. The data used is at quarterly frequency and it consists in the unemployment rate and GDP between 2000 and 2009. I use three different priors, a normal one, a beta prior and a uniform prior for the parameter associated to the Okun coefficient. The results indicate an Okun coefficient around -0.20, with the prior distributions having a mild effect on posterior mean results.

• Item Type: MPRA Paper
• Language: English
• Keywords: dynamic linear models, Bayesian techniques, unemployment, Okun coefficient, simulation techniques
• Subjects: C - Mathematical and Quantitative Methods > C5 - Econometric Modeling > C51 - Model Construction and Estimation

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