Economics is the discipline of using data to revise beliefs about economic issues. In Bayesian econometrics, the revision is conducted in accordance with the laws of probability, conditional on what has been observed. The normative appeal of Bayesian econometrics is the same as that of expected...

This paper surveys the fundamental principles of subjective Bayesian inference in econometrics and their implementation using posterior simulation methods. The emphasis is on the combination of models and the development of predictive distributions. The paper shows how posterior simulators can...

A common practice in macroeconomics is to assess the validity of general equilibrium models by first deriving their implications for population moments and then comparing population moments with observed sample moments. Generally the population moments are not explicit functions of model...