The Application of Bayesian Methods in Studies on Economic Growth in Regions

The purpose of this chapter is to present the Bayesian methods applied in the research into the factors responsible for regional economic growth. It presents the assumptions of the Bayesian pooling approach in regression models, the elements of Bayesian inference, and the details of the MC3 algorithm applied in successive stages of this study. The chapter also discusses the issue of the collinearity of explanatory variables. These issues constitute the theoretical core of empirical studies on convergence in the EU regions, conducted in the following chapter.