Fig. 10

Posterior densities of country effects (\(\alpha _j\)) and sector effects (\(\beta _i\)) from the BHM (MCMC). Vertical line at 0. Posterior means (moderate prior \(\mathscr {N}(0,2)\)): \(\bar{\alpha}\) ≈ 0.012, \(\bar{\beta}\) ≈ − 0.006 (Table 3).