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Time-varying parameters (TVPs) models are frequently used in economics to capture structural change. I highlight a rather underutilized fact -- that these are actually ridge regressions. Instantly, this makes computations, tuning, and…

Econometrics · Economics 2024-11-18 Philippe Goulet Coulombe

We account for time-varying parameters in the conditional expectile-based value at risk (EVaR) model. The EVaR downside risk is more sensitive to the magnitude of portfolio losses compared to the quantile-based value at risk (QVaR). Rather…

Statistical Finance · Quantitative Finance 2020-09-29 Xiu Xu , Andrija Mihoci , Wolfgang Karl Härdle

Multivariate dynamic time series models are widely encountered in practical studies, e.g., modelling policy transmission mechanism and measuring connectedness between economic agents. To better capture the dynamics, this paper proposes a…

Econometrics · Economics 2020-10-06 Yayi Yan , Jiti Gao , Bin Peng

The coronavirus pandemic has rapidly evolved into an unprecedented crisis. The susceptible-infectious-removed (SIR) model and its variants have been used for modeling the pandemic. However, time-independent parameters in the classical…

Populations and Evolution · Quantitative Biology 2020-09-09 Hyokyoung G. Hong , Yi Li

The Vector AutoRegressive Moving Average (VARMA) model is fundamental to the theory of multivariate time series; however, identifiability issues have led practitioners to abandon it in favor of the simpler but more restrictive Vector…

Methodology · Statistics 2021-06-09 Ines Wilms , Sumanta Basu , Jacob Bien , David S. Matteson

Estimating the covariance structure of multivariate time series is a fundamental problem with a wide-range of real-world applications -- from financial modeling to fMRI analysis. Despite significant recent advances, current state-of-the-art…

Machine Learning · Computer Science 2021-02-12 Hrayr Harutyunyan , Daniel Moyer , Hrant Khachatrian , Greg Ver Steeg , Aram Galstyan

In multivariate time series, the estimation of the covariance matrix of the observation innovations plays an important role in forecasting as it enables the computation of the standardized forecast error vectors as well as it enables the…

Methodology · Statistics 2008-02-04 K. Triantafyllopoulos

Estimating a sparse covariance matrix is a fundamental problem in high-dimensional statistics. However, thresholding methods developed for independent data are generally not directly applicable to high-dimensional time series, where…

Methodology · Statistics 2026-05-15 Wenhao Zhang , Zhaoxing Gao

How best to model structurally heterogeneous processes is a foundational question in the social, health and behavioral sciences. Recently, Fisher et al., (2022) introduced the multi-VAR approach for simultaneously estimating…

Change-point processes are one flexible approach to model long time series. We propose a method to uncover which model parameter truly vary when a change-point is detected. Given a set of breakpoints, we use a penalized likelihood approach…

Econometrics · Economics 2024-02-09 Arnaud Dufays , Aristide Houndetoungan , Alain Coën

We employ model predictive control for a multi-period portfolio optimization problem. In addition to the mean-variance objective, we construct a portfolio whose allocation is given by model predictive control with a risk-parity objective,…

Portfolio Management · Quantitative Finance 2021-03-22 Xiaoyue Li , A. Sinem Uysal , John M. Mulvey

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

We propose an optimal-transport-based matching method to nonparametrically estimate linear models with independent latent variables. The method consists in generating pseudo-observations from the latent variables, so that the Euclidean…

Econometrics · Economics 2020-01-01 Manuel Arellano , Stephane Bonhomme

We propose a pointwise inference algorithm for high-dimensional linear models with time-varying coefficients. The method is based on a novel combination of the nonparametric kernel smoothing technique and a Lasso bias-corrected ridge…

Methodology · Statistics 2017-03-17 Xiaohui Chen , Yifeng He

This paper presents the application of a new semi-analytical method of linear regression for Poisson count data to COVID-19 events. The regression is based on the Bonamente and Spence (2022) maximum-likelihood solution for the best-fit…

Methodology · Statistics 2023-06-29 M. Bonamente

Many nonlinear time series models have been proposed in the last decades. Among them, the models with regime switchings provide a class of versatile and interpretable models which have received a particular attention in the literature. In…

Applications · Statistics 2014-05-20 Pierre Ailliot , Francoise Pene

In this contribution we introduce weakly locally stationary time series through the local approximation of the non-stationary covariance structure by a stationary one. This allows us to define autoregression coefficients in a non-stationary…

Statistics Theory · Mathematics 2018-01-16 François Roueff , Andres Sanchez-Perez

Time series of matrix-valued data are increasingly available in various areas including economics, finance, social science, among others. These data may shed light on the inter-dynamical relationships between two sets of attributes, for…

Methodology · Statistics 2026-04-22 Fei Wu , Kung-Sik Chan

Vector autoregressive (VAR) models are widely used for causal discovery and forecasting in multivariate time series analysis. In the high-dimensional setting, which is increasingly common in fields such as neuroscience and econometrics,…

This paper focuses on recursive estimation of time varying autoregressive processes in a nonparametric setting. The stability of the model is revisited and uniform results are provided when the time-varying autoregressive parameters belong…

Statistics Theory · Mathematics 2007-06-13 Eric Moulines , Pierre Priouret , François Roueff
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