I'm trying to figure out if I can apply JAGS/BUGS to analyze a system of
equations with two-way dependencies between variables (simultaneous equations
models in econometrics). As I have learned, BUGS and therefore JAGS are based
on directed acyclic graphs (DAG) framework. Does it mean I cannot use
BUGS/JAGS for my task? Any suggestions will be appreciated.
JAGS strictly enforces a "no-cycle" rule. It is impossible to create a model
with a directed cycle in JAGS.
BUGS will allow you to do create cycles_ at your own risk_. It will let you
define a model that makes no sense and assume you know what you are doing.
Nevertheless, I think that the interpretations of BUGS models and structural
equation models are different, even though they use a similar graphical