1. Problem Restatement

We have:

Likelihood:

\[ f(y|\beta,\sigma^2) = \left( \frac{\lambda^2}{2\pi} \right)^{n/2} |H|^{-1/2} \exp\left[ -\frac{\lambda^2}{2} (y - X\beta)' H^{-1} (y - X\beta) \right] \]

where \(\lambda^2 = 1/\sigma^2\).

Prior on \(\lambda^2\):

\[ \lambda^2 \sim \text{Gamma}(a,b) \quad \text{so} \quad \pi(\lambda^2) \propto (\lambda^2)^{a-1} e^{-b \lambda^2}, \quad \lambda^2 > 0 \]

(We must check density scaling later; often \(b\) is rate, but here it’s probably in the exponential as \(e^{-b\lambda^2}\).)

Prior on \(\beta\) given \(\lambda^2\):

\[ \beta \mid \lambda^2 \sim N_p\left(\beta_0, \; \frac{1}{\lambda^2} M^{-1} \right) \]

so covariance \(= M^{-1} / \lambda^2\).

That means the prior density is:

\[ \pi(\beta|\lambda^2) \propto (\lambda^2)^{p/2} |M|^{1/2} \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_0)' M (\beta - \beta_0) \right] \]

2. Joint Prior

Joint prior:

\[ \pi(\beta, \lambda^2) = \pi(\beta | \lambda^2) \cdot \pi(\lambda^2). \]

Substitute:

\[ \pi(\beta|\lambda^2) \propto (\lambda^2)^{p/2} \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_0)' M (\beta - \beta_0) \right] \] \[ \pi(\lambda^2) \propto (\lambda^2)^{a-1} \exp\left[ -b \lambda^2 \right] \]

Multiply:

\[ \pi(\beta, \lambda^2) \propto (\lambda^2)^{p/2 + a - 1} \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_0)' M (\beta - \beta_0) - b \lambda^2 \right]. \]

3. Combine the Exponentials

Exponent:

\[ -\frac{\lambda^2}{2} (\beta - \beta_0)' M (\beta - \beta_0) - b \lambda^2 \] \[ = -\frac{\lambda^2}{2} \left[ (\beta - \beta_0)' M (\beta - \beta_0) + 2b \right]. \]

Thus:

\[ \pi(\beta, \lambda^2) \propto (\lambda^2)^{p/2 + a - 1} \exp\left[ -\frac{\lambda^2}{2} \Big( (\beta - \beta_0)' M (\beta - \beta_0) + 2b \Big) \right]. \]

4. Match with Given Form

Given joint prior:

\[ \pi(\beta, \lambda^2) \propto \lambda^{p + 2a - 2} \exp\left[ -\frac{\lambda^2}{2} \big\{ 2b + (\beta - \beta_0)' M (\beta - \beta_0) \big\} \right] \]

Check exponents carefully: My result above has
\((\lambda^2)^{p/2 + a - 1}\)
and \(\lambda^{2(p/2 + a - 1)} = \lambda^{p + 2a - 2}\).

Yes, indeed:

\[ (\lambda^2)^{p/2 + a - 1} = \lambda^{p + 2a - 2}. \]

So the given form matches exactly.

5. Final Answer for Joint Prior

The joint prior density is proportional to:

\[ \boxed{ \pi(\beta, \lambda^2) \propto (\lambda^2)^{\frac{p}{2} + a - 1} \exp\left[ -\frac{\lambda^2}{2} \Big( (\beta - \beta_0)' M (\beta - \beta_0) + 2b \Big) \right] } \]

or equivalently:

\[ \boxed{ \pi(\beta, \lambda^2) \propto \lambda^{p + 2a - 2} \exp\left[ -\frac{\lambda^2}{2} \big( 2b + (\beta - \beta_0)' M (\beta - \beta_0) \big) \right]. } \]


6. Joint Posterior Distribution

The joint posterior is proportional to (likelihood × prior).

Likelihood:

\[ f(y|\beta,\lambda^2) \propto (\lambda^2)^{n/2} \exp\left[ -\frac{\lambda^2}{2} (y - X\beta)' H^{-1} (y - X\beta) \right] \]

Prior:

\[ \pi(\beta,\lambda^2) \propto (\lambda^2)^{p/2 + a - 1} \exp\left[ -\frac{\lambda^2}{2} \left( 2b + (\beta - \beta_0)' M (\beta - \beta_0) \right) \right] \]

Multiplying:

\[ \pi(\beta,\lambda^2|y) \propto (\lambda^2)^{n/2 + p/2 + a - 1} \exp\left[ -\frac{\lambda^2}{2} \left( (y - X\beta)' H^{-1} (y - X\beta) + (\beta - \beta_0)' M (\beta - \beta_0) + 2b \right) \right] \]

So Eq. (6.3) is simply:

\[ \pi(\beta,\lambda^2|y) \propto (\lambda^2)^{\frac{n+p}{2} + a - 1} \exp\left[ -\frac{\lambda^2}{2} Q(\beta) \right] \]

with

\[ Q(\beta) = 2b + (y - X\beta)' H^{-1} (y - X\beta) + (\beta - \beta_0)' M (\beta - \beta_0). \]

7. Completing the Square in \(\beta\)

We need to rewrite \(Q(\beta)\) as a quadratic form in \(\beta\):

First, expand the two quadratic terms separately:

Term A = \((y - X\beta)' H^{-1} (y - X\beta)\):

\[ = y' H^{-1} y - 2 y' H^{-1} X\beta + \beta' X' H^{-1} X \beta. \]

Term B = \((\beta - \beta_0)' M (\beta - \beta_0)\):

\[ = \beta' M \beta - 2 \beta_0' M \beta + \beta_0' M \beta_0. \]

So:

\[ Q(\beta) = 2b + y' H^{-1} y + \beta_0' M \beta_0 - 2\beta'(X' H^{-1} y + M \beta_0) + \beta' (X' H^{-1} X + M) \beta. \]

Define:

\[ M_* = M + X' H^{-1} X \] and

\[ c = X' H^{-1} y + M \beta_0. \]

Then:

\[ Q(\beta) = \beta' M_* \beta - 2 \beta' c + \left( 2b + y' H^{-1} y + \beta_0' M \beta_0 \right). \]

8. Complete the Square

Let \(\beta_* = M_*^{-1} c\). Then we have:

\[ Q(\beta) = (\beta - \beta_*)' M_* (\beta - \beta_*) + \text{(terms not involving \(\beta\))}. \]

Let’s find that constant term:

We know

\[ \beta' M_* \beta - 2\beta' c = (\beta - \beta_*)' M_* (\beta - \beta_*) - \beta_*' M_* \beta_* \]

since:

\[ (\beta - \beta_*)' M_* (\beta - \beta_*) = \beta' M_* \beta - 2\beta' M_* \beta_* + \beta_*' M_* \beta_* \]

and \(M_* \beta_* = c\) so \(\beta' c = \beta' M_* \beta_*\).

Thus:

\[ Q(\beta) = (\beta - \beta_*)' M_* (\beta - \beta_*) - \beta_*' M_* \beta_* + \left( 2b + y' H^{-1} y + \beta_0' M \beta_0 \right). \]

Define \(2b_*\) as the constant term:

\[ 2b_* = 2b + y' H^{-1} y + \beta_0' M \beta_0 - \beta_*' M_* \beta_*. \]

Then:

\[ Q(\beta) = 2b_* + (\beta - \beta_*)' M_* (\beta - \beta_*). \]

This matches Eq. (6.4).

9. Joint Posterior Now

Substitute into Eq. (6.3):

\[ \pi(\beta,\lambda^2|y) \propto (\lambda^2)^{\frac{n+p}{2} + a - 1} \exp\left[ -\frac{\lambda^2}{2} \left( 2b_* + (\beta - \beta_*)' M_* (\beta - \beta_*) \right) \right]. \]

That is exactly Eq. (6.5).

10. Conditional Posterior of \(\beta|\lambda^2,y\)

From Eq. (6.5), fixing \(\lambda^2\), we see the dependence on \(\beta\) is a normal kernel:

\[ \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_*)' M_* (\beta - \beta_*) \right] \]

so

\[ \beta \mid \lambda^2, y \sim N\left(\beta_*, \frac{1}{\lambda^2} M_*^{-1} \right). \]

11. Conditional Posterior of \(\lambda^2|\beta,y\)

From Eq. (6.3) or (6.5), fixing \(\beta\), treat \(\lambda^2\):

The only \(\lambda^2\) factors are \((\lambda^2)^{\frac{n+p}{2}+a-1}\) and the exponential factor \(\exp\left[ -\frac{\lambda^2}{2} Q(\beta) \right]\), where \(Q(\beta) = 2b_* + (\beta - \beta_*)' M_* (\beta - \beta_*)\) from the completed square.

So it’s exactly a gamma kernel with shape \(\frac{n+p}{2} + a\) and rate \(b_* + \frac{1}{2}(\beta-\beta_*)' M_* (\beta-\beta_*)\) if we recall:

Gamma density: \(f(x) \propto x^{r-1} e^{-s x}\) with rate \(s\) — here \(x = \lambda^2\), so \(r = \frac{n+p}{2} + a\) and \(s = b_* + \frac{1}{2}(\beta-\beta_*)' M_* (\beta-\beta_*)\).

But \(\lambda^2\) in prior \(G(a,b)\) means \(b\) is the rate (scale = \(1/b\)).

So:

\[ \lambda^2 \mid \beta, y \sim G\left( a + \frac{n+p}{2}, \; b_* + \frac{1}{2}(\beta - \beta_*)' M_* (\beta-\beta_*) \right). \]

Thus the given final forms in Eq. (6.6) are:

\[ \boxed{ \beta \mid \lambda^2, y \sim N\left( \beta_*, (\lambda^2 M_*)^{-1} \right) } \] \[ \boxed{ \lambda^2 \mid \beta, y \sim \text{Gamma}\left( \frac{n+p}{2} + a, \; b_* + \frac{1}{2}(\beta-\beta_*)' M_* (\beta-\beta_*) \right) } \]


12. Derivation of Marginal Posterior Distributions (Equation 6.7)

12.1 Marginal Posterior of \(\beta|y\)

To obtain \(\pi(\beta|y)\), we integrate out \(\lambda^2\):

\[ \pi(\beta|y) \propto \int_0^\infty (\lambda^2)^{\frac{n+p}{2} + a - 1} \exp\left[ -\frac{\lambda^2}{2} Q(\beta) \right] d(\lambda^2) \]

where \(Q(\beta) = 2b_* + (\beta - \beta_*)' M_* (\beta - \beta_*)\).

Let \(t = \lambda^2\). Then the integrand becomes: \[ t^{\frac{n+p}{2} + a - 1} e^{-t \cdot Q(\beta)/2} \]

This is a Gamma kernel. Recall the Gamma integral: \[ \int_0^\infty t^{r-1} e^{-st} dt = \frac{\Gamma(r)}{s^r}, \quad s > 0 \]

Here: \[ r = \frac{n+p}{2} + a, \quad s = \frac{Q(\beta)}{2} \]

Thus: \[ \pi(\beta|y) \propto \left[ \frac{Q(\beta)}{2} \right]^{-\left( \frac{n+p}{2} + a \right)} \]

Therefore: \[ \pi(\beta|y) \propto \left[ 2b_* + (\beta - \beta_*)' M_* (\beta - \beta_*) \right]^{-\left( \frac{n+p}{2} + a \right)} \]

12.2 Recognizing the Multivariate t-Distribution

A multivariate t-distribution with \(\nu\) degrees of freedom, location \(\mu\), and scale matrix \(\Sigma\) has density:

\[ f(x) \propto \left[ \nu + (x - \mu)' \Sigma^{-1} (x - \mu) \right]^{-(\nu + p)/2} \]

Compare with our expression. The exponent in our density is: \[ -\left( \frac{n+p}{2} + a \right) = -\frac{n + p + 2a}{2} \]

This matches the t-distribution exponent \(-\frac{\nu + p}{2}\) if: \[ \nu + p = n + p + 2a \quad \Rightarrow \quad \nu = n + 2a \]

Now we need to match the quadratic form. Factor out \(2b_*\) from our expression:

\[ \pi(\beta|y) \propto (2b_*)^{-\left( \frac{n+2a+p}{2} \right)} \left[ 1 + \frac{1}{2b_*} (\beta - \beta_*)' M_* (\beta - \beta_*) \right]^{-\left( \frac{n+2a+p}{2} \right)} \]

For the standard t-distribution with \(\nu = n+2a\), we have: \[ f(x) \propto \left[ 1 + \frac{1}{\nu} (x - \mu)' \Sigma^{-1} (x - \mu) \right]^{-(\nu + p)/2} \]

Matching terms: \[ \frac{1}{\nu} \Sigma^{-1} = \frac{1}{2b_*} M_* \quad \Rightarrow \quad \Sigma^{-1} = \frac{\nu}{2b_*} M_* = \frac{n+2a}{2b_*} M_* \]

Therefore: \[ \Sigma = \frac{2b_*}{n+2a} M_*^{-1} \]

Thus: \[ \boxed{\beta \mid y \sim t_{n+2a}\left( \beta_*, \; \frac{2b_*}{n+2a} M_*^{-1} \right)} \]

12.3 Marginal Posterior of \(\lambda^2|y\)

To obtain \(\pi(\lambda^2|y)\), we integrate out \(\beta\) from the joint posterior:

\[ \pi(\lambda^2|y) \propto \int \pi(\beta,\lambda^2|y) d\beta \]

From Equation (6.5): \[ \pi(\beta,\lambda^2|y) \propto (\lambda^2)^{\frac{n+p}{2} + a - 1} e^{-\lambda^2 b_*} \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_*)' M_* (\beta - \beta_*) \right] \]

The integral over \(\beta\) is a Gaussian integral: \[ \int \exp\left[ -\frac{\lambda^2}{2} (\beta - \beta_*)' M_* (\beta - \beta_*) \right] d\beta = \left( \frac{2\pi}{\lambda^2} \right)^{p/2} |M_*|^{-1/2} \]

This contributes a factor of \((\lambda^2)^{-p/2}\) to the kernel.

Therefore: \[ \pi(\lambda^2|y) \propto (\lambda^2)^{\frac{n+p}{2} + a - 1} e^{-\lambda^2 b_*} \times (\lambda^2)^{-p/2} \]

Simplify the exponent on \(\lambda^2\): \[ \frac{n+p}{2} + a - 1 - \frac{p}{2} = \frac{n}{2} + a - 1 \]

Thus: \[ \pi(\lambda^2|y) \propto (\lambda^2)^{\frac{n}{2} + a - 1} e^{-b_* \lambda^2} \]

This is the kernel of a Gamma distribution with shape \(\frac{n}{2} + a\) and rate \(b_*\):

\[ \boxed{\lambda^2 \mid y \sim G\left( \frac{n}{2} + a, \; b_* \right)} \]

12.4 Final Answer (Equation 6.7)

The marginal posterior distributions are:

\[ \boxed{ \beta|y \sim t_{n+2a}\left( \beta_*, \frac{2b_*}{n+2a} M_*^{-1} \right), \quad \lambda^2|y \sim G\left( \frac{n}{2} + a, b_* \right) } \]

13. Important Note on Interpretation

  • Equation (6.6) gives the full conditional posterior distributions: \[ \beta|\lambda^2,y \sim N\left(\beta_*, \frac{1}{\lambda^2}M_*^{-1}\right), \quad \lambda^2|\beta,y \sim G\left(\frac{n+p}{2}+a, \; b_* + \frac{1}{2}(\beta-\beta_*)'M_*(\beta-\beta_*)\right) \] These are conditional on the other parameter being known/fixed. They are used in Gibbs sampling.

  • Equation (6.7) gives the marginal posterior distributions, obtained by integrating out the nuisance parameter. These are different:

    • Marginal of \(\beta\) is a \(t\)-distribution (not normal) because integrating over \(\lambda^2\) introduces heavier tails.
    • Marginal of \(\lambda^2\) has shape \(\frac{n}{2}+a\) (not \(\frac{n+p}{2}+a\)) because integrating over \(\beta\) consumes the \(p/2\) degrees of freedom.

You cannot simply use (6.6) to claim what the marginal distributions are; the integration step is essential.