Estimation of the survival of industries with Approximate Bayesian Computation (abc)



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Estimation of the survival of industries with Approximate Bayesian Computation (ABC)
We discuss to model the survival of new firms in the industries considering the analogy between the evolutionary ecology and economics. As for many complex models having the issues of missing data or poor prior knowledge, the proposed models have computationally intractable likelihoods. Applying Approximate Bayesian Computation to these survival models allows doing posterior inference about parameters in the model. Thereby we adopt the Approximate Bayesian Computation framework in applying to data on survival of private sector establishments in US economy.
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