Markov Beta and Gamma Processes for Modelling Hazard Rates

Abstract
This paper generalizes the discrete time independent increment beta process ofHjort (1990), for modelling discrete failure times, and also generalizes the independent gamma process for modelling piecewise constant hazard rates (Walker and Mallick, 1997). The generalizations are from independent increment to Markov increment prior processes allowing the modelling of smoothness. We derive posterior distributions and undertake a full Bayesian analysis.

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