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This paper introduces a novel theory-coherent shrinkage prior for Time-Varying Parameter VARs (TVP-VARs). The prior centers the time-varying parameters on a path implied a priori by an underlying economic theory, chosen to describe the…

Econometrics · Economics 2024-11-05 Andrea Renzetti

The paper provides a parametrization of Vector Autoregression (VAR) that enables one to look at the parameters associated with unit root dynamics and those associated with stable dynamics separately. The task is achieved via a novel…

Methodology · Statistics 2021-04-07 Anindya Roy , Tucker S. McElroy

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

High-dimensional vector autoregressive (VAR) models offer a versatile framework for multivariate time series analysis, yet face critical challenges from over-parameterization and uncertain lag order. In this paper, we systematically compare…

Methodology · Statistics 2026-02-10 Harrison Katz , Robert E. Weiss

Factor Analysis has traditionally been utilized across diverse disciplines to extrapolate latent traits that influence the behavior of multivariate observed variables. Historically, the focus has been on analyzing data from a single study,…

Methodology · Statistics 2026-01-22 Elena Bortolato , Antonio Canale

We propose a flexible class of models based on scale mixture of uniform distributions to construct shrinkage priors for covariance matrix estimation. This new class of priors enjoys a number of advantages over the traditional scale mixture…

Methodology · Statistics 2011-10-07 Hao Wang , Natesh S. Pillai

Modern data science applications often involve complex relational data with dynamic structures. An abrupt change in such dynamic relational data is typically observed in systems that undergo regime changes due to interventions. In such a…

Methodology · Statistics 2024-07-16 Peng Zhao , Anirban Bhattacharya , Debdeep Pati , Bani K. Mallick

VARs are often estimated with Bayesian techniques to cope with model dimensionality. The posterior means define a class of shrinkage estimators, indexed by hyperparameters that determine the relative weight on maximum likelihood estimates…

Econometrics · Economics 2025-02-07 Oriol González-Casasús , Frank Schorfheide

We develop singular value shrinkage priors for the mean matrix parameters in the matrix-variate normal model with known covariance matrices. Our priors are superharmonic and put more weight on matrices with smaller singular values. They are…

Statistics Theory · Mathematics 2021-04-05 Takeru Matsuda , Fumiyasu Komaki

This paper extends the idea of decoupling shrinkage and sparsity for continuous priors to Bayesian Quantile Regression (BQR). The procedure follows two steps: In the first step, we shrink the quantile regression posterior through state of…

Econometrics · Economics 2021-07-20 David Kohns , Tibor Szendrei

This article proposes a Bayesian approach to regression with a scalar response against vector and tensor covariates. Tensor covariates are commonly vectorized prior to analysis, failing to exploit the structure of the tensor, and resulting…

Methodology · Statistics 2015-09-23 Rajarshi Guhaniyogi , Shaan Qamar , David B. Dunson

Motivated by the proliferation of extensive macroeconomic and health datasets necessitating accurate forecasts, a novel approach is introduced to address Vector Autoregressive (VAR) models. This approach employs the global-local…

Methodology · Statistics 2024-03-06 Luca Rossini , Cristiano Villa , Sotiris Prevenas , Rachel McCrea

Recent economic events, including the global financial crisis and COVID-19 pandemic, have exposed limitations in linear Factor Augmented Vector Autoregressive (FAVAR) models for forecasting and structural analysis. Nonlinear dimension…

Machine Learning · Statistics 2025-03-07 Yiyong Luo , Brooks Paige , Jim Griffin

As an alternative to variable selection or shrinkage in high dimensional regression, we propose to randomly compress the predictors prior to analysis. This dramatically reduces storage and computational bottlenecks, performing well when the…

Machine Learning · Statistics 2013-03-26 Rajarshi Guhaniyogi , David B. Dunson

High-dimensional spatially correlated covariates are common in regression models encountered in environmental sciences and other fields. In such models, the regression coefficients often exhibit a sparse structure with spatial dependence.…

Methodology · Statistics 2026-05-08 Zihan Zhu , Xueying Tang , Shuang Zhou

Multi-group covariance estimation for matrix-variate data with small within group sample sizes is a key part of many data analysis tasks in modern applications. To obtain accurate group-specific covariance estimates, shrinkage estimation…

Methodology · Statistics 2024-03-08 Elizabeth Bersson , Peter D. Hoff

In recent years, shrinkage priors have received much attention in high-dimensional data analysis from a Bayesian perspective. Compared with widely used spike-and-slab priors, shrinkage priors have better computational efficiency. But the…

Statistics Theory · Mathematics 2020-01-16 Ruoyang Zhang , Malay Ghosh

In this paper we develop a novel approach for estimating large and sparse dynamic factor models using variational inference, also allowing for missing data. Inspired by Bayesian variable selection, we apply slab-and-spike priors onto the…

Methodology · Statistics 2022-10-14 Erik Spånberg

Sparseness of the regression coefficient vector is often a desirable property, since, among other benefits, sparseness improves interpretability. In practice, many true regression coefficients might be negligibly small, but non-zero, which…

Methodology · Statistics 2019-10-01 Daniel Andrade , Kenji Fukumizu

Many statistical models seek relationship between variables via subspaces of reduced dimensions. For instance, in factor models, variables are roughly distributed around a low dimensional subspace determined by the loading matrix; in mixed…

Methodology · Statistics 2018-05-09 Jianqing Fan , Yiqiao Zhong