... squareddifferences between the cash distribution and the stationary distribution). Thesecond block is a random walk Metropolis-Hastings step to draw a realization12The precision is just the inverse of ... mean of theθs, which is denoted¯θ, and then drawing deviations of this mean, which aredenoted θǫ,i. An individual θ is then defined asθi=¯θ + θǫ,i,i = 1, , n. This allows good movement ... likelihood. The natural question is how diffuse are the priors used. A natural accounting for this would be touse a Jefferys prior. In our case this is impossible since this requires taking theHessian...