A Question for the Setting of Priors
Posted: Tue Aug 19, 2014 1:33 amHi, guys,
I'm currently working as a research assistant in a project, being asked to estimate a model using traditional Bayesian approach. When I try to write the prior for the autoregressive compoment of the cost-push shock, I meet some difficulties- I was asked to set 0 as the prior mean(or some number close enough to 0), and in most cases the priors for autoregressive components would be set to beta distribution. but when I set it up as beta_pdf,0,0.05, it shouldn't work because of the properties of beta distribution. So I wanna ask whether there's some alternative distribution , allowing for 0 as an option?
Thanks and best of luck.
I'm currently working as a research assistant in a project, being asked to estimate a model using traditional Bayesian approach. When I try to write the prior for the autoregressive compoment of the cost-push shock, I meet some difficulties- I was asked to set 0 as the prior mean(or some number close enough to 0), and in most cases the priors for autoregressive components would be set to beta distribution. but when I set it up as beta_pdf,0,0.05, it shouldn't work because of the properties of beta distribution. So I wanna ask whether there's some alternative distribution , allowing for 0 as an option?
Thanks and best of luck.