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Bayesian inference in limited dependent variable models. An application to measuring strike duration
Author(s) -
Dejong D. N.
Publication year - 1993
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.3950080202
Subject(s) - duration (music) , bayesian probability , hazard , econometrics , inference , bayesian inference , monte carlo method , statistics , statistical inference , variable (mathematics) , computer science , mathematics , artificial intelligence , art , mathematical analysis , chemistry , literature , organic chemistry
This paper presents a straightforward set of Bayesian techniques for analyzing models involving limited dependent variables; the techniques are demonstrated in an analysis of Kennan's (1985) data on contract strikes in US manufacturing. The data are analyzed by deriving posterior distributions—including probability distributions—of hazard functions for strike duration using numerical Monte Carlo methods. The distributions are employed to derive coverage intervals for hazard functions, to assess the relative plausibility of nonnested hypotheses concerning the shape of the functions, and to assess the impact of industrial production on duration.