Huang, Ho‐Chuan (River); Shen, Chung‐Hua - In: Journal of Economic Studies 29 (2002) 3, pp. 222-239
This paper proposes a probit regression with autocorrelated errors (PAR) to estimate the reaction function of monetary policy in Taiwan using newly constructed binary monetary indicators. We develop a practical sampling scheme via the Gibbs sampling algorithm with data augmentation to make...