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Restrictions from economic theory are usually placed on the parameter space in DSGE models. Such restrictions are also … utilized to ensure identifiability. But even when the population parameter value is consistent with theory, the likelihood …
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We describe a methodology for making counterfactual predictions when the information held by strategic agents is a latent parameter. The analyst observes behavior which is rationalized by a Bayesian model in which agents maximize expected utility, given partial and differential information...
Persistent link: https://www.econbiz.de/10012892592
We describe a methodology for making counterfactual predictions when the information held by strategic agents is a latent parameter. The analyst observes behavior which is rationalized by a Bayesian model in which agents maximize expected utility given partial and differential information about...
Persistent link: https://www.econbiz.de/10012893994
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