A Bayesian approach to analyze regional elasticities



Provided by Research Papers in Economics

38th Congress Of The

European Regional Science Association

28 August- 1 September 1998

Europe quo vadis ? - Regional Questions at The Turn Of The Century

Session C7

Tullio Gregori

Dip. di Scienze Economiche e Statistiche,
Un. di Trieste

Trieste, Italy

Fax 0039 40 567543

[email protected]

A BAYESIAN APPROACH TO ANALYZE
REGIONAL ELASTICITIES

ABSTRACT:

This paper presents the bayesian approach to analyze regional
elasticity distributions with a regular translog cost function. It is known
that a proper statistical analysis of elasticities can be performed only with
the bayesian approach. We can take advantage of this methodology to
form reasonable priors using national data. This way we can produce
sounder inferences without much elicition by the analyst. To compare
results this approach is applied to a cost function for the main regions in
Italy with a diffuse prior too. Price and substitution elasticities are
derived conditional on factor shares or covariates. The low posterior
probability than inequality constraints hold with an noninformative prior
shows how bayesian methods can be fruitfully employed to compare
regional elasticities with a proper prior obtained from national data.



More intriguing information

1. Om Økonomi, matematik og videnskabelighed - et bud på provokation
2. Evolutionary Clustering in Indonesian Ethnic Textile Motifs
3. Brauchen wir ein Konjunkturprogramm?: Kommentar
4. The name is absent
5. The purpose of this paper is to report on the 2008 inaugural Equal Opportunities Conference held at the University of East Anglia, Norwich
6. El Mercosur y la integración económica global
7. Gender stereotyping and wage discrimination among Italian graduates
8. Wirtschaftslage und Reformprozesse in Estland, Lettland, und Litauen: Bericht 2001
9. fMRI Investigation of Cortical and Subcortical Networks in the Learning of Abstract and Effector-Specific Representations of Motor Sequences
10. The name is absent