belief hetero 🐎

[hyunjimoon]

GANDHI-BeliefHeterogeneityExplain-2015.pdf

[hyunjimoon]

thought it’d interesting to give priors on fractional adjustment but this parameter is tricky due to its overlap of cause and effect; eg entrepreneur’s responsiveness mostly increase their capital stock but even before that, one’s responsiveness explains their entrepreneurial identity (why they became entrepreneur in the first place).

I’m super interested in techniques to construct priors for frac.adj complex enough to be realistic and simple enough to be identified by data

are you aware of any literatures on this or techniques?