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Extracting implied information, like volatility and/or dividend, from observed option prices is a challenging task when dealing with American options, because of the computational costs needed to solve the corresponding mathematical problem…

Computational Finance · Quantitative Finance 2020-02-05 Shuaiqiang Liu , Álvaro Leitao , Anastasia Borovykh , Cornelis W. Oosterlee

Variance reduction techniques are designed to decrease the sampling variance, thereby accelerating convergence rates of first-order (FO) and zeroth-order (ZO) optimization methods. However, in composite optimization problems, ZO methods…

Machine Learning · Computer Science 2024-05-29 Hao Di , Haishan Ye , Yueling Zhang , Xiangyu Chang , Guang Dai , Ivor W. Tsang

We develop a method to combine Markov chain Monte Carlo (MCMC) and variational inference (VI), leveraging the advantages of both inference approaches. Specifically, we improve the variational distribution by running a few MCMC steps. To…

Machine Learning · Statistics 2019-05-29 Francisco J. R. Ruiz , Michalis K. Titsias

Most leading implementations of black-box variational inference (BBVI) are based on optimizing a stochastic evidence lower bound (ELBO). But such approaches to BBVI often converge slowly due to the high variance of their gradient estimates…

Approximate inference in Bayesian deep networks exhibits a dilemma of how to yield high fidelity posterior approximations while maintaining computational efficiency and scalability. We tackle this challenge by introducing a novel…

Machine Learning · Computer Science 2021-11-01 Son Nguyen , Duong Nguyen , Khai Nguyen , Khoat Than , Hung Bui , Nhat Ho

We propose a simple and general variant of the standard reparameterized gradient estimator for the variational evidence lower bound. Specifically, we remove a part of the total derivative with respect to the variational parameters that…

Machine Learning · Statistics 2017-05-30 Geoffrey Roeder , Yuhuai Wu , David Duvenaud

Variational inference is an umbrella term for algorithms which cast Bayesian inference as optimization. Classically, variational inference uses the Kullback-Leibler divergence to define the optimization. Though this divergence has been…

Machine Learning · Statistics 2018-03-16 Rajesh Ranganath , Jaan Altosaar , Dustin Tran , David M. Blei

In variational inference (VI), an approximation of the posterior distribution is selected from a family of distributions through numerical optimization. With the most common variational objective function, known as the evidence lower bound…

Machine Learning · Statistics 2025-01-15 Declan McNamara , Jackson Loper , Jeffrey Regier

Gradient-based optimization methods are commonly used to identify local optima in high-dimensional spaces. When derivatives cannot be evaluated directly, stochastic estimators can provide approximate gradients. However, these estimators'…

Machine Learning · Computer Science 2026-02-03 Philipp Andelfinger , Wentong Cai

We present a new algorithm for stochastic variational inference that targets at models with non-differentiable densities. One of the key challenges in stochastic variational inference is to come up with a low-variance estimator of the…

Machine Learning · Computer Science 2018-10-26 Wonyeol Lee , Hangyeol Yu , Hongseok Yang

We propose a variance reduction framework for variational inference using the Multilevel Monte Carlo (MLMC) method. Our framework is built on reparameterized gradient estimators and "recycles" parameters obtained from past update history in…

Machine Learning · Statistics 2021-12-03 Masahiro Fujisawa , Issei Sato

The Bayesian estimation of GARCH-family models has been typically addressed through Monte Carlo sampling. Variational Inference is gaining popularity and attention as a robust approach for Bayesian inference in complex machine learning…

Machine Learning · Statistics 2023-10-06 Martin Magris , Alexandros Iosifidis

Variational inference in probabilistic graphical models aims to approximate fundamental quantities such as marginal distributions and the partition function. Popular approaches are the Bethe approximation, tree-reweighted, and other types…

Machine Learning · Statistics 2025-02-06 Harald Leisenberger , Franz Pernkopf

In Bayesian statistics, the choice of the prior can have an important influence on the posterior and the parameter estimation, especially when few data samples are available. To limit the added subjectivity from a priori information, one…

Methodology · Statistics 2025-12-05 Nils Baillie , Antoine Van Biesbroeck , Clément Gauchy

Blind image restoration (IR) is a common yet challenging problem in computer vision. Classical model-based methods and recent deep learning (DL)-based methods represent two different methodologies for this problem, each with their own…

Image and Video Processing · Electrical Eng. & Systems 2024-05-02 Zongsheng Yue , Hongwei Yong , Qian Zhao , Lei Zhang , Deyu Meng , Kwan-Yee K. Wong

We develop EigenVI, an eigenvalue-based approach for black-box variational inference (BBVI). EigenVI constructs its variational approximations from orthogonal function expansions. For distributions over $\mathbb{R}^D$, the lowest order term…

Machine Learning · Statistics 2024-11-01 Diana Cai , Chirag Modi , Charles C. Margossian , Robert M. Gower , David M. Blei , Lawrence K. Saul

Variational inference is increasingly being addressed with stochastic optimization. In this setting, the gradient's variance plays a crucial role in the optimization procedure, since high variance gradients lead to poor convergence. A…

Machine Learning · Computer Science 2020-10-23 Tomas Geffner , Justin Domke

We show how to use a variational approximation to the logistic function to perform approximate inference in Bayesian networks containing discrete nodes with continuous parents. Essentially, we convert the logistic function to a Gaussian,…

Artificial Intelligence · Computer Science 2013-01-30 Kevin Murphy

Black-Box Variational Inference (BBVI) typically relies on Stochastic Gradient Descent (SGD) to optimize the Evidence Lower Bound (ELBO). However, the stochastic gradients in BBVI inherently exhibit unbounded variance, violating standard…

Machine Learning · Computer Science 2026-05-11 Hippolyte Labarrière , Cesare Molinari , Silvia Villa , Lorenzo Rosasco

A broad class of hybrid quantum-classical algorithms known as "variational algorithms" have been proposed in the context of quantum simulation, machine learning, and combinatorial optimization as a means of potentially achieving a quantum…

Quantum Physics · Physics 2021-04-09 Aram Harrow , John Napp
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