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Table 1 Forecasting using Bayesian estimation prior types 2019:1–2019:12.

From: The macroeconomic effects of COVID-19 in Montenegro: a Bayesian VARX approach

Prior

Variable

RMSE,\(\lambda_{1} = 0.5\)

RMSE,\(\lambda_{1} = 1.0\)

Standard VAR

GDP_GAP

0.149639

0.149639

Minnesota

GDP_GAP

0.059793

0.068993

Normal-Flat

GDP_GAP

0.066566

0.066566

Normal-Wishart

GDP_GAP

0.066562

0.066562

Sims-Zha (N-W)

GDP_GAP

0.062344

0.071688

Giannone, L & P

GDP_GAP

0.063592

0.063770

  1. Bold values are the lowest RMSE