Should-Read: In-Koo Cho and Kenneth Kasa: Model Averaging and Persistent Disagreement: “Two agents construct models of an endogenous price process… …One agent thinks the data are stationary, the other thinks the data are nonstationary. A policymaker combines forecasts from the two models using a recursive Bayesian model averaging procedure. The actual (but unknown) price process … Continue reading Should-Read: In-Koo Cho and Kenneth Kasa: Model Averaging and Persistent Disagreement