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Variational Bayes (VB) is a popular scalable alternative to Markov chain Monte Carlo for Bayesian inference. We study a mean-field spike and slab VB approximation of widely used Bayesian model selection priors in sparse high-dimensional…

Machine Learning · Statistics 2021-09-07 Kolyan Ray , Botond Szabo , Gabriel Clara

Variational Bayes methods are a potential scalable estimation approach for state space models. However, existing methods are inaccurate or computationally infeasible for many state space models. This paper proposes a variational…

Econometrics · Economics 2023-06-05 Rubén Loaiza-Maya , Didier Nibbering

In this paper, we show that the recent integration of statistical models with deep recurrent neural networks provides a new way of formulating volatility (the degree of variation of time series) models that have been widely used in time…

Machine Learning · Computer Science 2018-12-06 Rui Luo , Weinan Zhang , Xiaojun Xu , Jun Wang

Stochastic variational inference algorithms are derived for fitting various heteroskedastic time series models. We examine Gaussian, t, and skew-t response GARCH models and fit these using Gaussian variational approximating densities. We…

Computation · Statistics 2023-08-30 Hanwen Xuan , Luca Maestrini , Feng Chen , Clara Grazian

Bayesian forecasting is developed in multivariate time series analysis for causal inference. Causal evaluation of sequentially observed time series data from control and treated units focuses on the impacts of interventions using…

Methodology · Statistics 2024-06-21 Graham Tierney , Christoph Hellmayr , Greg Barkimer , Kevin Li , Mike West

Varying coefficient models are popular for estimating nonlinear regression functions in functional data models. Their Bayesian variants have received limited attention in large data applications, primarily due to prohibitively slow…

Machine Learning · Statistics 2025-06-03 Rajarshi Guhaniyogi , Laura Baracaldo , Sudipto Banerjee

In this work, we propose a scalable Bayesian procedure for learning the local dependence structure in a high-dimensional model where the variables possess a natural ordering. The ordering of variables can be indexed by time, the vicinities…

Methodology · Statistics 2021-09-27 Kyoungjae Lee , Lizhen Lin

This article introduces a nonparametric approach to multivariate time-varying power spectrum analysis. The procedure adaptively partitions a time series into an unknown number of approximately stationary segments, where some spectral…

Methodology · Statistics 2017-06-28 Zeda Li , Robert T. Krafty

We explore various Bayesian approaches to estimate partial Gaussian graphical models. Our hierarchical structures enable to deal with single-output as well as multiple-output linear regressions, in small or high dimension, enforcing either…

Methodology · Statistics 2021-12-14 Eunice Okome Obiang , Pascal Jézéquel , Frédéric Proïa

While stochastic variational inference is relatively well known for scaling inference in Bayesian probabilistic models, related methods also offer ways to circumnavigate the approximation of analytically intractable expectations. The key…

Machine Learning · Statistics 2015-09-08 David A. Knowles

We propose a simple stochastic volatility model which is analytically tractable, very easy to simulate and which captures some relevant stylized facts of financial assets, including scaling properties. In particular, the model displays a…

Statistical Finance · Quantitative Finance 2012-04-20 Alessandro Andreoli , Francesco Caravenna , Paolo Dai Pra , Gustavo Posta

With uncertain changes of the economic environment, macroeconomic downturns during recessions and crises can hardly be explained by a Gaussian structural shock. There is evidence that the distribution of macroeconomic variables is skewed…

Econometrics · Economics 2021-05-25 Sune Karlsson , Stepan Mazur , Hoang Nguyen

Variational Bayes (VB) has been used to facilitate the calculation of the posterior distribution in the context of Bayesian inference of the parameters of nonlinear models from data. Previously an analytical formulation of VB has been…

Signal Processing · Electrical Eng. & Systems 2020-07-06 Michael A. Chappell , Martin S. Craig , Mark W. Woolrich

We consider a continuous-time stochastic volatility model. The model contains a stationary volatility process, the multivariate density of the finite dimensional distributions of which we aim to estimate. We assume that we observe the…

Statistics Theory · Mathematics 2014-07-08 Bert van Es , Peter Spreij

Correlations between asset returns are important in many financial applications. In recent years, multivariate volatility models have been used to describe the time-varying feature of the correlations. However, the curse of dimensionality…

Statistics Theory · Mathematics 2008-12-02 Ruey S. Tsay

The stochastic volatility model is a popular tool for modeling the volatility of assets. The model is a nonlinear and non-Gaussian state space model, and consequently is difficult to fit. Many approaches, both classical and Bayesian, have…

Methodology · Statistics 2019-07-22 Chen Gong , David S. Stoffer

We propose a novel Bayesian heteroskedastic Markov-switching structural vector autoregression with data-driven time-varying identification. The model selects among alternative patterns of exclusion restrictions to identify structural shocks…

Econometrics · Economics 2025-02-28 Annika Camehl , Tomasz Woźniak

Estimating time-varying correlation matrices is challenging because existing methods may adapt slowly to structural changes, impose insufficient regularization, or produce diffuse posterior uncertainty. In moderate dimensions, an additional…

Methodology · Statistics 2026-05-11 Daniel Andrew Coulson , David S. Matteson , Martin T. Wells

Harvey et al. (2010) extended the Bayesian estimation method by Sahu et al. (2003) to a multivariate skew-elliptical distribution with a general skewness matrix, and applied it to Bayesian portfolio optimization with higher moments.…

Methodology · Statistics 2021-08-10 Sakae Oya , Teruo Nakatsuma

Stochastic volatility (SV) models mimic many of the stylized facts attributed to time series of asset returns, while maintaining conceptual simplicity. The commonly made assumption of conditionally normally distributed or…

Methodology · Statistics 2014-06-19 Roland Langrock , Théo Michelot , Alexander Sohn , Thomas Kneib