A Contribution of Bayesian Approach to Experimental Economics

26 Pages Posted: 5 Feb 2016

See all articles by Alvaro Hurtado

Alvaro Hurtado

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF)

Date Written: February 2, 2016

Abstract

The main contribution of this work is the discussion about the widespread of the data from the economic experiments. Particularly, in regards with those that research about the dis- counting rate of the agents, where we suggest using the Dynamic Stochastic General Equilibrium models (DSGE) under a Bayesian approach. Besides, the inclusion of the entrepreneurs in the economic experiments in order to establish which are the long and short discounting rate is also mentioned. In this way, in order to reach what was said before, both a Neoclassic and a Neo Keynesian standard model were used to contrast the parameters robustness. Finally, it is showed that both the short and long term discounting rates after using Bayesian estimation are more consistent with the experiments carried out with entrepreneurs than those with students.

Keywords: Models and applications, Intertemporal Consumer Choice, Bayesian econometrics

JEL Classification: E37, D91, E32

Suggested Citation

Hurtado, Alvaro, A Contribution of Bayesian Approach to Experimental Economics (February 2, 2016). Center for Research in Economics and Finance (CIEF), Working Papers, No. 16-01, Available at SSRN: https://ssrn.com/abstract=2728282 or http://dx.doi.org/10.2139/ssrn.2728282

Alvaro Hurtado (Contact Author)

Universidad EAFIT - School of Economics and Finance - Center for Research in Economic & Finance (CIEF) ( email )

Carrera 49 No. 7 South - 50
Bogotá
Colombia

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