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This paper proposes a quasi-maximum likelihood (QML) estimator for break points in high-dimensional factor models, specifically accounting for multiple structural breaks. We begin by establishing a necessary and sufficient condition to…

Econometrics · Economics 2026-04-20 Jiangtao Duan , Jushan Bai , Xu Han

In this paper, we investigate quasi-maximum likelihood (QML) estimation for the parameters of a cointegrated solution of a continuous-time linear state space model observed at discrete time points. The class of cointegrated solutions of…

Statistics Theory · Mathematics 2019-11-11 Vicky Fasen-Hartmann , Markus Scholz

We review Quasi Maximum Likelihood estimation of factor models for high-dimensional panels of time series. We consider two cases: (1) estimation when no dynamic model for the factors is specified (Bai and Li, 2012, 2016); (2) estimation…

Econometrics · Economics 2024-10-08 Matteo Barigozzi

This paper establishes the almost sure convergence and asymptotic normality of levels and differenced quasi maximum-likelihood (QML) estimators of dynamic panel data models. The QML estimators are robust with respect to initial conditions,…

Statistics Theory · Mathematics 2017-02-03 Robert F. Phillips

This study proposes a point estimator of the break location for a one-time structural break in linear regression models. If the break magnitude is small, the least-squares estimator of the break date has two modes at the ends of the finite…

Econometrics · Economics 2020-06-04 Yaein Baek

This paper proposes maximum (quasi)likelihood estimation for high dimensional factor models with regime switching in the loadings. The model parameters are estimated jointly by the EM (expectation maximization) algorithm, which in the…

Econometrics · Economics 2023-04-11 Giovanni Urga , Fa Wang

A factor model with a break in its factor loadings is observationally equivalent to a model without changes in the loadings but a change in the variance of its factors. This effectively transforms a structural change problem of high…

Econometrics · Economics 2023-12-06 Jushan Bai , Jiangtao Duan , Xu Han

This paper considers estimation of large dynamic factor models with common and idiosyncratic trends by means of the Expectation Maximization algorithm, implemented jointly with the Kalman smoother. We show that, as the cross-sectional…

Econometrics · Economics 2019-10-23 Matteo Barigozzi , Matteo Luciani

The purpose of this paper is to study the convergence of the quasi-maximum likelihood (QML) estimator for long memory linear processes. We first establish a correspondence between the long-memory linear process representation and the…

Statistics Theory · Mathematics 2024-05-24 Jean-Marc Bardet , Yves Gael Tchabo Mbienkeu

We propose a confirmatory dynamic factor model for a large number of stocks whose returns are observed daily across multiple time zones. The model has a global factor and a continental factor that both drive the individual stock return…

Statistics Theory · Mathematics 2025-02-25 Oliver B. Linton , Haihan Tang , Jianbin Wu

This paper investigates the properties of Quasi Maximum Likelihood estimation of an approximate factor model for an $n$-dimensional vector of stationary time series. We prove that the factor loadings estimated by Quasi Maximum Likelihood…

Econometrics · Economics 2024-06-28 Matteo Barigozzi

Understanding the theoretical capabilities and limitations of quantum machine learning (QML) models to solve machine learning tasks is crucial to advancing both quantum software and hardware developments. Similarly to the classical setting,…

Quantum Physics · Physics 2026-03-31 Qiuhao Chen , Yuling Jiao , Yinan Li , Xiliang Lu , Jerry Zhijian Yang

We study estimation of large Dynamic Factor models implemented through the Expectation Maximization (EM) algorithm, jointly with the Kalman smoother. We prove that as both the cross-sectional dimension, $n$, and the sample size, $T$,…

Statistics Theory · Mathematics 2024-09-26 Matteo Barigozzi , Matteo Luciani

Linear mixed-effects models are widely used in analyzing clustered or repeated measures data. We propose a quasi-likelihood approach for estimation and inference of the unknown parameters in linear mixed-effects models with high-dimensional…

Methodology · Statistics 2021-03-10 Sai Li , Tony T. Cai , Hongzhe Li

A novel estimation approach for a general class of semi-parametric multivariate time series models is introduced where the conditional mean is modeled through parametric functions. The focus of the estimation is the conditional mean…

Methodology · Statistics 2025-07-21 Mirko Armillotta

Identifying the number of factors in a high-dimensional factor model has attracted much attention in recent years and a general solution to the problem is still lacking. A promising ratio estimator based on the singular values of the lagged…

Methodology · Statistics 2018-01-23 Zeng Li , Qinwen Wang , Jianfeng Yao

Factor analysis, a classical multivariate statistical technique is popularly used as a fundamental tool for dimensionality reduction in statistics, econometrics and data science. Estimation is often carried out via the Maximum Likelihood…

Optimization and Control · Mathematics 2018-01-19 Koulik Khamaru , Rahul Mazumder

We consider quasi maximum likelihood (QML) estimation for general non-Gaussian discrete-ime linear state space models and equidistantly observed multivariate L\'evy-driven continuoustime autoregressive moving average (MCARMA) processes. In…

Statistics Theory · Mathematics 2015-05-19 Eckhard Schlemm , Robert Stelzer

This paper studies the robustness of quasi-maximum-likelihood (QML) estimation in hidden Markov models (HMMs) when the regime-switching structure is misspecified. Specifically, we examine the case where the true data-generating process…

Econometrics · Economics 2026-01-14 Demian Pouzo , Martin Sola , Zacharias Psaradakis

Pervasive cross-section dependence is increasingly recognized as a characteristic of economic data and the approximate factor model provides a useful framework for analysis. Assuming a strong factor structure where $\Lop\Lo/N^\alpha$ is…

Econometrics · Economics 2023-03-07 Jushan Bai , Serena Ng
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