# infactor_or2: Inefficiency factor for ordinal quantile model with 3... In bqror: Bayesian Quantile Regression for Ordinal Models

## Description

This function calculates the inefficiency factor from the MCMC draws of (β, σ) for ordinal quantile model with 3 outcomes. The inefficiency factor is calculated using the batch-means method.

## Usage

 `1` ```infactor_or2(x, beta, sigma, autocorrelationCutoff) ```

## Arguments

 `x` covariate matrix of dimension (n x k) including a column of ones with or without column names. `beta` Gibbs draw of coefficients of dimension (k x nsim). `sigma` Gibbs draw of scale factor. `autocorrelationCutoff` cut-off to identify the number of lags.

## Details

Calculates the inefficiency factor of (β, σ) using the batch-means method.

## Value

Returns a list with components

• `inefficiencyBeta`: vector with inefficiency factor for each β.

• `inefficiencySigma`: vector with inefficiency factor for each σ.

## References

Greenberg, E. (2012). “Introduction to Bayesian Econometrics.” Cambridge University Press, Cambridge. DOI: 10.1017/CBO9780511808920

 ``` 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18``` ```set.seed(101) data("data25j3") x <- data25j3\$x y <- data25j3\$y k <- dim(x) output <- quantreg_or2(y = y, x = x, B0 = 10*diag(k), mcmc = 50, p = 0.25, display = FALSE) beta <- output\$beta sigma <- output\$sigma inefficiency <- infactor_or2(x, beta, sigma, 0.5) # Summary of Inefficiency Factor: # Inefficiency # beta_0 2.0011 # beta_1 1.6946 # beta_2 1.4633 # sigma 2.6590 ```