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Finding Bertram's optimal trading strategy for a pair of cointegrated assets following the Ornstein--Uhlenbeck price difference process can be formulated as an unconstrained convex optimization problem for maximization of expected profit…

Mathematical Finance · Quantitative Finance 2022-11-23 Vladimír Holý , Michal Černý

Parametric nonlinear mixed effects models (NLMEs) are now widely used in biometrical studies, especially in pharmacokinetics research and HIV dynamics models, due to, among other aspects, the computational advances achieved during the last…

Methodology · Statistics 2012-02-03 Ana Arribas-Gil , Karine Bertin , Cristian Meza , Vincent Rivoirard

The ensemble Kalman filter (EnKF) is a data assimilation technique that uses an ensemble of models, updated with data, to track the time evolution of a usually non-linear system. It does so by using an empirical approximation to the…

Applications · Statistics 2021-03-12 Elizabeth Hou , Earl Lawrence , Alfred O. Hero

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

The use of Bayesian filtering has been widely used in mathematical finance, primarily in Stochastic Volatility models. They help in estimating unobserved latent variables from observed market data. This field saw huge developments in recent…

Computational Finance · Quantitative Finance 2021-12-07 Kumar Yashaswi

The Linear Multistep Method Particle Filter (LMM PF) is a method for predicting the evolution in time of a evolutionary system governed by a system of differential equations. If some of the parameters of the governing equations are…

Numerical Analysis · Computer Science 2016-05-18 Daniela Calvetti , Salvatore Cuomo , Monica Pragliola , Erkki Somersalo , Gerardo Toraldo

Nonlinear extensions of the Kalman filter (KF), such as the extended Kalman filter (EKF) and the unscented Kalman filter (UKF), are indispensable for state estimation in complex dynamical systems, yet the conditions for a nonlinear KF to…

Systems and Control · Electrical Eng. & Systems 2026-03-25 Shida Jiang , Jaewoong Lee , Shengyu Tao , Scott Moura

This paper develops a class of potential outcomes models characterized by three main features: (i) Unobserved heterogeneity can be represented by a vector of potential outcomes and a type describing the manner in which an instrument…

Econometrics · Economics 2023-10-10 Manu Navjeevan , Rodrigo Pinto , Andres Santos

This report addresses the maximum likelihood identification of models for offset-free model predictive control, where linear time-invariant models are augmented with (fictitious) uncontrollable integrating modes, called integrating…

Systems and Control · Electrical Eng. & Systems 2025-09-15 Steven J. Kuntz , James B. Rawlings

We consider the problem of estimating the means $\mu_i$ of $n$ random variables $Y_i \sim N(\mu_i,1)$, $i=1,\ldots ,n$. Assuming some structure on the $\mu$ process, e.g., a state space model, one may use a summary statistics for the…

Statistics Theory · Mathematics 2014-06-05 E. Greenshtein , A. Mansura , Y. Ritov

Autonomous mobile robot competitions judge based on a robot's ability to quickly and accurately navigate the game field. This means accurate localization is crucial for creating an autonomous competition robot. Two common localization…

Systems and Control · Electrical Eng. & Systems 2023-10-18 Ethan Kou , Acshi Haggenmiller

Stochastic parameterizations are increasingly being used to represent the uncertainty associated with model errors in ensemble forecasting and data assimilation. One of the challenges associated with the use of these parameterizations is…

Computation · Statistics 2019-10-23 Guillermo Scheffler , Juan Ruiz , Manuel Pulido

We consider the filtering of continuous-time finite-state hidden Markov models, where the rate and observation matrices depend on unknown time-dependent parameters, for which no prior or stochastic model is available. We quantify and…

Probability · Mathematics 2021-03-17 Andrew L. Allan

The use of Kalman filtering, as well as its nonlinear extensions, for the estimation of system variables and parameters has played a pivotal role in many fields of scientific inquiry where observations of the system are restricted to a…

Dynamical Systems · Mathematics 2017-02-15 Joseph Arthur , Adam Attarian , Franz Hamilton , Hien Tran

We introduce a multi-factor stochastic volatility model for commodities that incorporates seasonality and the Samuelson effect. Conditions on the seasonal term under which the corresponding volatility factor is well-defined are given, and…

Pricing of Securities · Quantitative Finance 2018-11-27 Lorenz Schneider , Bertrand Tavin

This paper considers the problem of robustly estimating the parameters of a heavy-tailed multivariate distribution when the covariance matrix is known to have the structure of a low-rank matrix plus a diagonal matrix as considered in factor…

Computation · Statistics 2019-09-30 Rui Zhou , Junyan Liu , Sandeep Kumar , Daniel P. Palomar

We present a new probabilistic model to address semi-nonnegative matrix factorization (SNMF), called Skellam-SNMF. It is a hierarchical generative model consisting of prior components, Skellam-distributed hidden variables and observed data.…

Machine Learning · Computer Science 2021-07-08 Benoit Fuentes , Gaël Richard

This paper considers the Linear Minimum Variance recursive state estimation for the linear discrete time dynamic system with random state transition and measurement matrices, i.e., random parameter matrices Kalman filtering. It is shown…

Information Theory · Computer Science 2007-07-13 Dandan Luo , Yunmin Zhu

The Kalman filter combines forecasts and new observations to obtain an estimation which is optimal in the sense of a minimum average quadratic error. The Kalman filter has two main restrictions: (i) the dynamical system is assumed linear…

Statistical Mechanics · Physics 2009-10-31 D. Sornette , K. Ide

Kalman filtering and smoothing are the foundational mechanisms for efficient inference in Gauss-Markov models. However, their time and memory complexities scale prohibitively with the size of the state space. This is particularly…

Machine Learning · Computer Science 2025-03-13 Marvin Pförtner , Jonathan Wenger , Jon Cockayne , Philipp Hennig