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This paper investigates nonlinear panel regression models with interactive fixed effects and introduces a general framework for parameter estimation under potentially non-convex objective functions. We propose a computationally feasible…

Econometrics · Economics 2025-12-01 Kan Yao

We propose a new estimator of high-dimensional spot volatility matrices satisfying a low-rank plus sparse structure from noisy and asynchronous high-frequency data collected for an ultra-large number of assets. The noise processes are…

Econometrics · Economics 2024-03-12 Degui Li , Oliver Linton , Haoxuan Zhang

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

In this paper we propose a wavelet-based methodology for estimation and variable selection in partially linear models. The inference is conducted in the wavelet domain, which provides a sparse and localized decomposition appropriate for…

Methodology · Statistics 2016-09-26 Norbert Remenyi

In finance, economics and many other fields, observations in a matrix form are often observed over time. For example, many economic indicators are obtained in different countries over time. Various financial characteristics of many…

Methodology · Statistics 2017-06-22 Dong Wang , Xialu Liu , Rong Chen

Modeling the time-varying covariance structures of high-dimensional variables is critical across diverse scientific and industrial applications; however, existing approaches exhibit notable limitations in either modeling flexibility or…

Methodology · Statistics 2026-01-21 Taehee Lee , Jun S. Liu

We propose a novel two-regime regression model where regime switching is driven by a vector of possibly unobservable factors. When the factors are latent, we estimate them by the principal component analysis of a panel data set. We show…

Econometrics · Economics 2022-08-11 Sokbae Lee , Yuan Liao , Myung Hwan Seo , Youngki Shin

We present a new framework for robust estimation and inference on second-order stationary time series and random fields. This framework is based on the Generalized Method of Wavelet Moments which uses the wavelet variance to achieve…

Applications · Statistics 2016-07-21 Stéphane Guerrier , Roberto Molinari

We consider identification, inference and validation of linear panel data models when both factors and factor loadings are accounted for by a nonparametric function. This general specification encompasses rather popular models such as the…

Econometrics · Economics 2025-06-13 Juan M. Rodriguez-Poo , Alexandra Soberon , Stefan Sperlich

We provide a simple method to estimate the parameters of multivariate stochastic volatility models with latent factor structures. These models are very useful as they alleviate the standard curse of dimensionality, allowing the number of…

Econometrics · Economics 2023-02-15 Giorgio Calzolari , Roxana Halbleib , Christian Mücher

We propose FNETS, a methodology for network estimation and forecasting of high-dimensional time series exhibiting strong serial- and cross-sectional correlations. We operate under a factor-adjusted vector autoregressive (VAR) model which,…

Methodology · Statistics 2025-03-05 Matteo Barigozzi , Haeran Cho , Dom Owens

We are interested in the online prediction of the electricity load, within the Bayesian framework of dynamic models. We offer a review of sequential Monte Carlo methods, and provide the calculations needed for the derivation of so-called…

Applications · Statistics 2013-04-16 Tristan Launay , Anne Philippe , Sophie Lamarche

This paper develops estimation and inference methods for conditional quantile factor models. We first introduce a simple sieve estimation, and establish asymptotic properties of the estimators under large $N$. We then provide a bootstrap…

Econometrics · Economics 2022-06-21 Qihui Chen

The representation of solutions of Maxwell's equations as superpositions of scalar wavelets with vector coefficients developed earlier is generalized to wavelets with polarization, which are matrix-valued. The construction proceeds in four…

Mathematical Physics · Physics 2007-05-23 Gerald Kaiser

Factor analysis is a flexible technique for assessment of multivariate dependence and codependence. Besides being an exploratory tool used to reduce the dimensionality of multivariate data, it allows estimation of common factors that often…

Methodology · Statistics 2020-02-19 Kelly C. M. Gonçalves , Afonso C. B. Silva

We reconcile the two worlds of dense and sparse modeling by exploiting the positive aspects of both. We employ a factor model and assume {the dynamic of the factors is non-pervasive while} the idiosyncratic term follows a sparse vector…

Methodology · Statistics 2022-05-25 Jonas Krampe , Luca Margaritella

In dealing with high-dimensional data sets, factor models are often useful for dimension reduction. The estimation of factor models has been actively studied in various fields. In the first part of this paper, we present a new approach to…

Statistical Finance · Quantitative Finance 2017-11-27 Joongyeub Yeo , George Papanicolaou

In this paper, we study a new two-way factor model for high-dimensional matrix-variate time series. To estimate the number of factors in this two-way factor model, we decompose the series into two parts: one being a non-weakly correlated…

Methodology · Statistics 2025-01-28 Qiang Xia

The factor modeling for high-dimensional time series is powerful in discovering latent common components for dimension reduction and information extraction. Most available estimation methods can be divided into two categories: the…

Methodology · Statistics 2026-05-26 Xinghao Qiao , Zihan Wang , Qiwei Yao , Bo Zhang

This paper studies optimal estimation of large-dimensional nonlinear factor models. The key challenge is that the observed variables are possibly nonlinear functions of some latent variables where the functional forms are left unspecified.…

Statistics Theory · Mathematics 2023-11-14 Yingjie Feng