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

Petre Caraiani

Romanian Economic Journal, 2010, vol. 13, issue 38, 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.

Keywords: dynamic linear models; Bayesian techniques; unemployment; Okun coefficient; simulation techniques (search for similar items in EconPapers)
JEL-codes: C51 E32 E52 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:rej:journl:v:13:y:2010:i:38:p:53-65

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