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Large Bayesian vector autoregressions with various forms of stochastic volatility have become increasingly popular in empirical macroeconomics. One main difficulty for practitioners is to choose the most suitable stochastic volatility…

Econometrics · Economics 2022-08-30 Joshua C. C. Chan

Many economic variables feature changes in their conditional mean and volatility, and Time Varying Vector Autoregressive Models are often used to handle such complexity in the data. Unfortunately, when the number of series grows, they…

Econometrics · Economics 2022-01-19 G. Cubadda , S. Grassi , B. Guardabascio

Vector autoregressive (VAR) models assume linearity between the endogenous variables and their lags. This assumption might be overly restrictive and could have a deleterious impact on forecasting accuracy. As a solution, we propose…

Econometrics · Economics 2021-03-10 Florian Huber , Luca Rossini

Panel Vector Autoregressions (PVARs) are a popular tool for analyzing multi-country datasets. However, the number of estimated parameters can be enormous, leading to computational and statistical issues. In this paper, we develop fast…

Econometrics · Economics 2022-02-10 Martin Feldkircher , Florian Huber , Gary Koop , Michael Pfarrhofer

We propose a Bayesian vector autoregressive (VAR) model for mixed-frequency data. Our model is based on the mean-adjusted parametrization of the VAR and allows for an explicit prior on the 'steady states' (unconditional means) of the…

Econometrics · Economics 2019-11-22 Sebastian Ankargren , Måns Unosson , Yukai Yang

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

While seasonality inherent to raw macroeconomic data is commonly removed by seasonal adjustment techniques before it is used for structural inference, this may distort valuable information in the data. As an alternative method to commonly…

Econometrics · Economics 2025-08-12 Daniel Dzikowski , Carsten Jentsch

High-dimensional vector autoregressive (VAR) models are important tools for the analysis of multivariate time series. This paper focuses on high-dimensional time series and on the different regularized estimation procedures proposed for…

Machine Learning · Statistics 2020-06-11 Jonas Krampe , Efstathios Paparoditis

Bayesian aggregation lets election forecasters combine diverse sources of information, such as state polls and economic and political indicators: as in our collaboration with The Economist magazine. However, the demands of real-time…

Methodology · Statistics 2025-10-23 Geonhee Han , Andrew Gelman , Aki Vehtari

We discuss Bayesian model uncertainty analysis and forecasting in sequential dynamic modeling of multivariate time series. The perspective is that of a decision-maker with a specific forecasting objective that guides thinking about relevant…

Methodology · Statistics 2022-06-07 Isaac Lavine , Michael Lindon , Mike West

We discuss the issue of estimating large-scale vector autoregressive (VAR) models with stochastic volatility in real-time situations where data are sampled at different frequencies. In the case of a large VAR with stochastic volatility, the…

Econometrics · Economics 2019-12-06 Sebastian Ankargren , Paulina Jonéus

We develop a Quantile Bayesian Vector Autoregression (QBVAR) to forecast real oil prices across different quantiles of the conditional distribution. The model allows predictor effects to vary across quantiles, capturing asymmetries that…

Econometrics · Economics 2026-04-15 Hilde C. Bjornland , Nicolas Hardy , Dimitris Korobilis

Time series of individual subjects have become a common data type in psychological research. These data allow one to estimate models of within-subject dynamics, and thereby avoid the notorious problem of making within-subjects inferences…

Applications · Statistics 2020-03-16 Jonas M B Haslbeck , Laura F Bringmann , Lourens J Waldorp

Modeling nonstationary processes is of paramount importance to many scientific disciplines including environmental science, ecology, and finance, among others. Consequently, flexible methodology that provides accurate estimation across a…

Methodology · Statistics 2014-08-13 Wen-Hsi Yang , Scott H. Holan , Christopher K. Wikle

The vector autoregressive (VAR) model has been widely used for modeling temporal dependence in a multivariate time series. For large (and even moderate) dimensions, the number of AR coefficients can be prohibitively large, resulting in…

Applications · Statistics 2013-10-21 Richard A. Davis , Pengfei Zang , Tian Zheng

Accurate macroeconomic forecasting has become harder amid geopolitical disruptions, policy reversals, and volatile financial markets. Conventional vector autoregressions (VARs) overfit in high dimensional settings, while threshold VARs…

Econometrics · Economics 2025-10-28 Shovon Sengupta , Sunny Kumar Singh , Tanujit Chakraborty

Estimation of the value-at-risk (VaR) of a large portfolio of assets is an important task for financial institutions. As the joint log-returns of asset prices can often be projected to a latent space of a much smaller dimension, the use of…

Machine Learning · Computer Science 2021-12-06 Robert Sicks , Stefanie Grimm , Ralf Korn , Ivo Richert

Value-at-Risk (VaR) estimation at high confidence levels is inherently a rare-event problem and is particularly sensitive to tail behavior and model misspecification. This paper studies the performance of two simulation-based VaR estimation…

Risk Management · Quantitative Finance 2026-01-16 Aditri

Variational autoencoders (VAE) are powerful generative models that learn the latent representations of input data as random variables. Recent studies show that VAE can flexibly learn the complex temporal dynamics of time series and achieve…

Machine Learning · Computer Science 2023-11-14 Borui Cai , Shuiqiao Yang , Longxiang Gao , Yong Xiang

A new realized conditional autoregressive Value-at-Risk (VaR) framework is proposed, through incorporating a measurement equation into the original quantile regression model. The framework is further extended by employing various Expected…

Risk Management · Quantitative Finance 2021-01-18 Chao Wang , Richard Gerlach , Qian Chen