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False posteriors for the long-term growth determinants

Author

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  • Charemza, Wojciech W.
  • Strachan, Rodney
  • Zurawski, Piotr

Abstract

This paper shows: (1) bias may exist in Bayesian methods of selecting regressors; (2) the non-zero posterior inclusion probability of irrelevant regressors might affect the choice of regressors; and (3) how to compute the probability of falsely including a variable.

Suggested Citation

  • Charemza, Wojciech W. & Strachan, Rodney & Zurawski, Piotr, 2010. "False posteriors for the long-term growth determinants," Economics Letters, Elsevier, vol. 109(3), pages 144-146, December.
    • Handle: RePEc:eee:ecolet:v:109:y:2010:i:3:p:144-146
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    References listed on IDEAS

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    10. Bruce E. Hansen, 2007. "Least Squares Model Averaging," Econometrica, Econometric Society, vol. 75(4), pages 1175-1189, July.
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