Brock, William A.; Durlauf, Steven N.; Nason, James Michael - 2007
…It is not perhaps a proposal that one would consider
at all optimum if our knowledge of the fundamental causes of cyclical … untested knowledge. (pg. 263)
Model uncertainty has, due to the pioneering work of Hansen and Sargent ((2003)
and … rarely possesses any
meaningful prior knowledge from which priors may be constructed. The default prior in
the model …