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Bayesian Econometrics Methods

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Handbook of Labor, Human Resources and Population Economics

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Abstract

This chapter provides an introduction to the use of Bayesian methods in labor economics and related disciplines. Since the observed growth in Bayesian methods over the last two decades has largely been driven by computational advances, this passage focuses primarily on illustrating how such computations are performed in a selection of models that are relevant to applied work in this area. The chapter begins by discussing posterior simulation via Markov Chain Monte Carlo methods in the context of a binary choice model, which also contains an application involving Body Mass Index (BMI) and analysis of the likelihood of being overweight. Next, computation (i.e., posterior simulation) is discussed in a specification commonly encountered in applied microeconomics: a treatment-response model or, more specifically, a linear model with an endogenous right-hand side variable. The chapter closes with comments on the likely future of this literature, including a discussion and application of nonparametric Bayesian methods via the Dirichlet process.

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Acknowledgments

Responsible Section Editor: Alfonso Flores-Lagunes.

This chapter has benefitted from valuable comments provided by the editor and an anonymous reviewer. There is no conflict of interest.

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Authors and Affiliations

  1. Purdue University, West Lafayette, IN, USA

    Joshua Chan & Justin L. Tobias

Authors
  1. Joshua Chan
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  2. Justin L. Tobias
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Corresponding author

Correspondence to Justin L. Tobias .

Editor information

Editors and Affiliations

  1. UNU-MERIT & Princeton University, Maastricht, The Netherlands

    Klaus F. Zimmermann

Section Editor information

  1. Center for Policy Research; Institute of Labor Economics (IZA) and Global Labor Organization (GLO), Syracuse University, Syracuse, NY, USA

    Alfonso Flores-Lagunes

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Chan, J., Tobias, J.L. (2021). Bayesian Econometrics Methods. In: Zimmermann, K.F. (eds) Handbook of Labor, Human Resources and Population Economics. Springer, Cham. https://doi.org/10.1007/978-3-319-57365-6_55-1

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  • DOI: https://doi.org/10.1007/978-3-319-57365-6_55-1

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  • Print ISBN: 978-3-319-57365-6

  • Online ISBN: 978-3-319-57365-6

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