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In this paper, we consider the nonstationary matrix-valued time series with common stochastic trends. Unlike the traditional factor analysis which flattens matrix observations into vectors, we adopt a matrix factor model in order to fully…

Econometrics · Economics 2025-08-25 Degui Li , Yayi Yan , Qiwei Yao

This paper develops an inferential theory for state-varying factor models of large dimensions. Unlike constant factor models, loadings are general functions of some recurrent state process. We develop an estimator for the latent factors and…

Econometrics · Economics 2020-10-20 Markus Pelger , Ruoxuan Xiong

The intricate dynamics of stock markets have led to extensive research on models that are able to effectively explain their inherent complexities. This study leverages the econometrics literature to explore the dynamic factor model as an…

Statistical Finance · Quantitative Finance 2026-01-09 Brian Godwin Lim , Dominic Dayta , Benedict Ryan Tiu , Renzo Roel Tan , Len Patrick Dominic Garces , Kazushi Ikeda

The modal factor model represents a new factor model for dimension reduction in high dimensional panel data. Unlike the approximate factor model that targets for the mean factors, it captures factors that influence the conditional mode of…

Econometrics · Economics 2024-10-01 Zhe Sun , Yundong Tu

The paper considers linear regression problems where the number of predictor variables is possibly larger than the sample size. The basic motivation of the study is to combine the points of view of model selection and functional regression…

Statistics Theory · Mathematics 2012-02-24 Alois Kneip , Pascal Sarda

We propose a dynamic factor model (DFM) where the latent factors are linked to observed variables with unknown and potentially nonlinear functions. The key novelty and source of flexibility of our approach is a nonparametric observation…

Econometrics · Economics 2025-09-08 Tony Chernis , Niko Hauzenberger , Haroon Mumtaz , Michael Pfarrhofer

A defining feature of non-stationary systems is the time dependence of their statistical parameters. Measured time series may exhibit Gaussian statistics on short time horizons, due to the central limit theorem. The sample statistics for…

Data Analysis, Statistics and Probability · Physics 2020-10-08 Rudi Schäfer , Sonja Barkhofen , Thomas Guhr , Hans-Jürgen Stöckmann , Ulrich Kuhl

This paper generalises dynamic factor models for multidimensional dependent data. In doing so, it develops an interpretable technique to study complex information sources ranging from repeated surveys with a varying number of respondents to…

Econometrics · Economics 2023-01-31 Matteo Barigozzi , Filippo Pellegrino

We develop an estimator for the high-dimensional covariance matrix of a locally stationary process with a smoothly varying trend and use this statistic to derive consistent predictors in non-stationary time series. In contrast to the…

Methodology · Statistics 2020-01-08 Holger Dette , Weichi Wu

In complex systems, crucial parameters are often subject to unpredictable changes in time. Climate, biological evolution and networks provide numerous examples for such non-stationarities. In many cases, improved statistical models are…

Statistical Finance · Quantitative Finance 2015-12-09 Frederik Meudt , Martin Theissen , Rudi Schäfer , Thomas Guhr

In this paper we consider estimation of unobserved components in state space models using a dynamic factor approach to incorporate auxiliary information from high-dimensional data sources. We apply the methodology to unemployment estimation…

Econometrics · Economics 2020-02-17 Caterina Schiavoni , Franz Palm , Stephan Smeekes , Jan van den Brakel

Objective: Mixtures of temporally nonstationary signals are very common in biomedical applications. The nonstationarity of the source signals can be used as a discriminative property for signal separation. Herein, a semi-blind source…

Signal Processing · Electrical Eng. & Systems 2021-08-24 Fahimeh Jamshidian-Tehrani , Reza Sameni , Christian Jutten

The purpose of this article is to develop the dimension reduction techniques in panel data analysis when the number of individuals and indicators is large. We use Principal Component Analysis (PCA) method to represent large number of…

Methodology · Statistics 2017-01-10 Guobin Fang , Kani Chen , Bo Zhang

We propose a new estimator for the Generalised Dynamic Factor Model (GDFM) that simplifies estimation by avoiding frequency-domain methods. Our key theoretical insight shows that under reasonable conditions the dynamic common component can…

Econometrics · Economics 2026-05-08 Philipp Gersing

Distributed systems have been widely used in practice to accomplish data analysis tasks of huge scales. In this work, we target on the estimation problem of generalized linear models on a distributed system with nonrandomly distributed…

Methodology · Statistics 2020-04-07 Feifei Wang , Danyang Huang , Yingqiu Zhu , Hansheng Wang

This paper estimates the break point for large-dimensional factor models with a single structural break in factor loadings at a common unknown date. First, we propose a quasi-maximum likelihood (QML) estimator of the change point based on…

Econometrics · Economics 2021-04-01 Jiangtao Duan , Jushan Bai , Xu Han

Volatilities, in high-dimensional panels of economic time series with a dynamic factor structure on the levels or returns, typically also admit a dynamic factor decomposition. We consider a two-stage dynamic factor model method recovering…

Econometrics · Economics 2022-02-03 Matteo Barigozzi , Marc Hallin

Spectral singularities at non-zero frequencies play an important role in investigating cyclic or seasonal time series. The publication [2] introduced the generalized filtered method-of-moments approach to simultaneously estimate singularity…

Statistics Theory · Mathematics 2020-11-13 Antoine Ayache , Myriam Fradon , Ravindi Nanayakkara , Andriy Olenko

Dynamic factor models have a wide range of applications in econometrics and applied economics. The basic motivation resides in their capability of reducing a large set of time series to only few indicators (factors). If the number of time…

Statistics Theory · Mathematics 2009-09-29 Roberto Baragona , Francesco Battaglia

This work considers estimation and forecasting in a multivariate, possibly high-dimensional count time series model constructed from a transformation of a latent Gaussian dynamic factor series. The estimation of the latent model parameters…

Methodology · Statistics 2025-04-07 Younghoon Kim , Marie-Christine Düker , Zachary F. Fisher , Vladas Pipiras