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Posted: **Wed Apr 04, 2012 12:12 pm**

Hi Esther,

It appears that my last post did not get a reply. So let me try again.

They way the BVAR code is written now it sets the prior mean of all coefficients to beta0. Actually, what I meant is if it would be possible to just change the prior mean on the first own lag of each variable to 1(or to whichever other value, 0.9, 0.8, etc.).

Thanks!

Posted: **Thu Apr 05, 2012 2:27 pm**

It would be uneasy to meet your request at this stage. However, I can give you one solution to change the KoKo Normal-Wishart prior for beta by adding few lines in the addin programs. Please attached see the guide lines for those changes.

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Choosing a prior mean in BVAR (cont.)

Choosing a prior mean in BVAR (cont.)

Re: Choosing a prior mean in BVAR (cont.)