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hello. when running a normal wishart bayesian var, why is it not possible anymore in EViews11 to set prior for Lambda1?

It doesn't exist in the Normal-Wishart prior. It is "replaced" by the C hyper parameters.

what do you mean by "replaced"? In what sense? please elaborate. thank you

is it because of the H kronecker product Sigma for the prior in beta in equation (44.18)?

Equations 44.18 through 44.22 have no lambdas. But in previous versions of EViews we abused notation by using lambda instead of C in 44.22.

C3 is the degrees of freedom parameter. Is that too high to be a prior variance for mu1?

Or, should i take the inverse of C3 to obtain prior variance of Mu1?

What does S scale and V scale mean in the dialog box?

Its a description of what C1 and C2 are.

Hi Gareth,

Let me come back to this topic. On equation 44.22, page 807 of the Eviews11 manual to obtain the covariance terms of a normal wishart, how come the C1 hyperparameter is not found in the three equations? Should H_inverse of NW = C1*I (identity with dimension k), and not as presented in that same equation?

Ah, that's a typo.

The first line should be C1, the second line should be C2 and the third should be C3. Apologies.

Thanks, Gareth. Makes more sense now.