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...