Tetlow, Robert J.; Muehlen, Peter von zur - Society for Computational Economics - SCE - 2001
substantial literature adopting the Bayesian approach to parameter uncertainty has devel- oped which treats estimated model … of monetary policy. In contrast to the Bayesian approach, the Knightian response to uncertainty leads, in most cases, to …. We compare the Bayesian and Knightian (robust) approaches to model uncertainty. We show that in at least some …