Chan, Joshua2020-01-130747-4938http://hdl.handle.net/1885/197100We propose an easy technique to test for time-variation in coefficients and volatilities. Specifically, by using a noncentered parameterization for state space models, we develop a method to directly calculate the relevant Bayes factor using the Savage-Dickey density ratio — thus avoiding the computation of the marginal likelihood altogether. The proposed methodology is illustrated via two empirical applications. In the first application we test for time-variation in the volatility of inflation in the G7 countries. The second application investigates if there is substantial time-variation in the NAIRU in the US.application/pdfen-AU© 2016 Taylor & Francis Group, LLC201610.1080/07474938.2016.11679482019-08-25