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This paper re-examines the problem of estimating risk premia in linear factor pricing models. Typically, the data used in the empirical literature are characterized by weakness of some pricing factors, strong cross-sectional dependence in…

Econometrics · Economics 2019-04-09 Stanislav Anatolyev , Anna Mikusheva

This paper studies model selection consistency for high dimensional sparse regression when data exhibits both cross-sectional and serial dependency. Most commonly-used model selection methods fail to consistently recover the true model when…

Methodology · Statistics 2018-09-12 Jianqing Fan , Yuan Ke , Kaizheng Wang

We propose a novel bootstrap test of a dense model, namely factor regression, against a sparse plus dense alternative augmenting model with sparse idiosyncratic components. The asymptotic properties of the test are established under time…

Econometrics · Economics 2024-07-11 Jad Beyhum , Jonas Striaukas

Data can be assumed to be continuous functions defined on an infinite-dimensional space for many phenomena. However, the infinite-dimensional data might be driven by a small number of latent variables. Hence, factor models are relevant for…

Methodology · Statistics 2022-05-18 Israel Martínez-Hernández , Jesús Gonzalo , Graciela González-Farías

We consider estimation of large approximate factor models in high-dimensional panels of stationary time series using Principal Component Analysis (PCA). We review the key results establishing the necessary and sufficient conditions for…

Econometrics · Economics 2026-02-13 Matteo Barigozzi

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

This paper deals with the dimension reduction for high-dimensional time series based on common factors. In particular we allow the dimension of time series $p$ to be as large as, or even larger than, the sample size $n$. The estimation for…

Statistics Theory · Mathematics 2010-06-15 Clifford Lam , Qiwei Yao , Neil Bathia

This article considers to model large-dimensional matrix time series by introducing a regression term to the matrix factor model. This is an extension of classic matrix factor model to incorporate the information of known factors or useful…

Methodology · Statistics 2024-11-26 Yongchang Hui , Yuteng Zhang , Siting Huang

High-dimensional multivariate spatial-temporal data arise frequently in a wide range of applications; however, there are relatively few statistical methods that can simultaneously deal with spatial, temporal and variable-wise dependencies…

Methodology · Statistics 2020-02-05 Elynn Y. Chen , Xin Yun , Rong Chen , Qiwei Yao

We consider continuous-time models with a large panel of moment conditions, where the structural parameter depends on a set of characteristics, whose effects are of interest. The leading example is the linear factor model in financial…

Econometrics · Economics 2018-12-04 Yuan Liao , Xiye Yang

We propose a new framework for modeling high-dimensional matrix-variate time series by a two-way transformation, where the transformed data consist of a matrix-variate factor process, which is dynamically dependent, and three other blocks…

Econometrics · Economics 2021-08-19 Zhaoxing Gao , Ruey S. Tsay

We develop an estimation methodology for a factor model for high-dimensional matrix-valued time series, where common stochastic trends and common stationary factors can be present. We study, in particular, the estimation of (row and column)…

Methodology · Statistics 2025-01-06 Rong Chen , Simone Giannerini , Greta Goracci , Lorenzo Trapani

Multivariate time series alignment is critical for ensuring coherent analysis across variables, but missing values and timestamp inconsistencies make this task highly challenging. Existing approaches often rely on prior imputation, which…

Databases · Computer Science 2025-12-23 Ding Jia , Jingyu Zhu , Yu Sun , Aoqian Zhang , Shaoxu Song , Haiwei Zhang , Xiaojie Yuan

Many economic and scientific problems involve the analysis of high-dimensional functional time series, where the number of functional variables $p$ diverges as the number of serially dependent observations $n$ increases. In this paper, we…

Methodology · Statistics 2025-08-12 Shaojun Guo , Xinghao Qiao , Qingsong Wang , Zihan Wang

The variance--covariance matrix plays a central role in the inferential theories of high-dimensional factor models in finance and economics. Popular regularization methods of directly exploiting sparsity are not directly applicable to many…

Methodology · Statistics 2012-03-15 Jianqing Fan , Yuan Liao , Martina Mincheva

We propose a combined model, which integrates the latent factor model and the logistic regression model, for the citation network. It is noticed that neither a latent factor model nor a logistic regression model alone is sufficient to…

Machine Learning · Statistics 2019-12-03 Namjoon Suh , Xiaoming Huo , Eric Heim , Lee Seversky

Most factor modelling research in vector or matrix-valued time series assume all factors are pervasive/strong and leave weaker factors and their corresponding series to the noise. Weaker factors can in fact be important to a group of…

Methodology · Statistics 2024-05-14 Weilin Chen , Clifford Lam

This paper deals with the time-varying high dimensional covariance matrix estimation. We propose two covariance matrix estimators corresponding with a time-varying approximate factor model and a time-varying approximate characteristic-based…

Econometrics · Economics 2019-10-29 Jaeheon Jung

This paper proposes sparse and easy-to-interpret proximate factors to approximate statistical latent factors. Latent factors in a large-dimensional factor model can be estimated by principal component analysis (PCA), but are usually hard to…

Methodology · Statistics 2020-08-04 Markus Pelger , Ruoxuan Xiong

In finance, economics and many other fields, observations in a matrix form are often observed over time. For example, many economic indicators are obtained in different countries over time. Various financial characteristics of many…

Methodology · Statistics 2017-06-22 Dong Wang , Xialu Liu , Rong Chen