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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

We describe spatio-temporal random processes using linear mixed models. We show how many commonly used models can be viewed as special cases of this general framework and pay close attention to models with separable or product-sum…

Methodology · Statistics 2021-06-01 Michael Dumelle , Jay M. Ver Hoef , Claudio Fuentes , Alix Gitelman

Estimating and detecting faults is crucial in ensuring safe and efficient automated systems. In the presence of disturbances, noise or varying system dynamics, such estimation is even more challenging. To address this challenge, this…

Optimization and Control · Mathematics 2021-12-13 Chris van der Ploeg , Emilia Silvas , Nathan van de Wouw , Peyman Mohajerin Esfahani

Bayesian variable selection methods are powerful techniques for fitting and inferring on sparse high-dimensional linear regression models. However, many are computationally intensive or require restrictive prior distributions on model…

Methodology · Statistics 2023-10-10 Alexander C. McLain , Anja Zgodic , Howard Bondell

The liberalization of electricity markets and the development of renewable energy sources has led to new challenges for decision makers. These challenges are accompanied by an increasing uncertainty about future electricity price movements.…

Applications · Statistics 2018-09-12 Florian Ziel , Rick Steinert

Real-time calibration of stochastic volatility models (SVMs) is computationally bottlenecked by the need to repeatedly solve coupled partial differential equations (PDEs). In this work, we propose DeepSVM, a physics-informed Deep Operator…

Computational Finance · Quantitative Finance 2025-12-09 Kieran A. Malandain , Selim Kalici , Hakob Chakhoyan

Dynamic pricing is a promising strategy to address the challenges of smart charging, as traditional time-of-use (ToU) rates and stationary pricing (SP) do not dynamically react to changes in operating conditions, reducing revenue for…

Distributed, Parallel, and Cluster Computing · Computer Science 2024-08-27 Arun Kumar Kalakanti , Shrisha Rao

Optimal decision-making presents a significant challenge for autonomous systems operating in uncertain, stochastic and time-varying environments. Environmental variability over time can significantly impact the system's optimal decision…

Robotics · Computer Science 2024-03-11 Gokul Puthumanaillam , Xiangyu Liu , Negar Mehr , Melkior Ornik

This paper investigates the sensitivity of forecast performance measures to taking a real time versus pseudo out-of-sample perspective. We use monthly vintages for the United States (US) and the Euro Area (EA) and estimate a set of vector…

Econometrics · Economics 2020-04-13 Michael Pfarrhofer

This paper proposes two distinct contributions to econometric analysis of large information sets and structural instabilities. First, it treats a regression model with time-varying coefficients, stochastic volatility and exogenous…

Methodology · Statistics 2020-04-27 Dimitris Korobilis

This paper introduces a flexible time-varying network vector autoregressive model framework for large-scale time series. A latent group structure is imposed on the heterogeneous and node-specific time-varying momentum and network spillover…

Methodology · Statistics 2024-03-12 Degui Li , Bin Peng , Songqiao Tang , Weibiao Wu

Large-scale renewable energy deployment introduces pronounced volatility into the electricity system, turning grid operation into a complex stochastic optimization problem. Accurate electricity price forecasting (EPF) is essential not only…

Machine Learning · Computer Science 2026-04-17 Jan Niklas Lettner , Hadeer El Ashhab , Veit Hagenmeyer , Benjamin Schäfer

We have utilized the non-conjugate Variational Bayesian (VB) method for the problem of the sparse Poisson regression model. To provide approximate conjugacy in the model, the likelihood is approximated by a quadratic function, yielding…

Methodology · Statistics 2026-02-06 Mitra Kharabati , Morteza Amini , Mohammad Arashi

We propose a novel machine learning approach for probabilistic forecasting of hourly day-ahead electricity prices. In contrast with the recent advances in data-rich probabilistic forecasting, which approximates distributions with few…

General Economics · Economics 2025-07-04 Jozef Barunik , Lubos Hanus

The virtual element method (VEM) is a Galerkin approximation method that extends the finite element method to polytopal meshes. In this paper, we present two different conforming virtual element formulations for the numerical approximation…

Numerical Analysis · Mathematics 2021-12-30 Gianmarco Manzini , Annamaria Mazzia

Due to the liberalization of markets, the change in the energy mix and the surrounding energy laws, electricity research is a dynamically altering field with steadily changing challenges. One challenge especially for investment decisions is…

Statistical Finance · Quantitative Finance 2018-12-27 Rick Steinert , Florian Ziel

In light of recent work studying massive functional/longitudinal data, such as the resulting data from the COVID-19 pandemic, we propose a novel functional/longitudinal data model which is a combination of the popular varying coefficient…

Methodology · Statistics 2020-07-06 Lixia Hu , Tao Huang , Jinhong You

We study the parameter estimation for parabolic, linear, second-order, stochastic partial differential equations (SPDEs) observing a mild solution on a discrete grid in time and space. A high-frequency regime is considered where the mesh of…

Statistics Theory · Mathematics 2019-09-11 Markus Bibinger , Mathias Trabs

This paper deals with pricing of European and American options, when the underlying asset price follows Heston model, via the interior penalty discontinuous Galerkin finite element method (dGFEM). The advantages of dGFEM space…

Computational Finance · Quantitative Finance 2020-05-28 Sinem Kozpınar , Murat Uzunca , Bülent Karasözen

Reliably simulating two-dimensional many-body quantum dynamics with projected entangled pair states (PEPS) has long been a difficult challenge. In this work, we overcome this barrier for low-energy quantum dynamics by developing a stable…

Strongly Correlated Electrons · Physics 2026-01-29 Yantao Wu , Jannes Nys