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The multinomial probit model is a popular tool for analyzing choice behaviour as it allows for correlation between choice alternatives. Because current model specifications employ a full covariance matrix of the latent utilities for the…

Econometrics · Economics 2021-03-25 Ruben Loaiza-Maya , Didier Nibbering

Quantile Factor Models (QFM) represent a new class of factor models for high-dimensional panel data. Unlike Approximate Factor Models (AFM), where only location-shifting factors can be extracted, QFM also allow to recover unobserved factors…

Econometrics · Economics 2020-09-24 Liang Chen , Juan Jose Dolado , Jesus Gonzalo

Recently, advanced technologies have unlimited potential in solving various problems with a large amount of data. However, these technologies have yet to show competitive performance in brain-computer interfaces (BCIs) which deal with brain…

Artificial Intelligence · Computer Science 2022-06-20 Byeong-Hoo Lee , Jeong-Hyun Cho , Byoung-Hee Kwon , Seong-Whan Lee

We propose the Factor Augmented sparse linear Regression Model (FARM) that not only encompasses both the latent factor regression and sparse linear regression as special cases but also bridges dimension reduction and sparse regression…

Methodology · Statistics 2022-03-03 Jianqing Fan , Zhipeng Lou , Mengxin Yu

The motivation of this article is to improve inferences on the covariation in environmental exposures, motivated by data from a study of Toddlers Exposure to SVOCs in Indoor Environments (TESIE). The challenge is that the sample size is…

Methodology · Statistics 2026-05-20 Elizabeth Bersson , Kate Hoffman , Heather M. Stapleton , David B. Dunson

Mean-variance analysis is widely used in portfolio management to identify the best portfolio that makes an optimal trade-off between expected return and volatility. Yet, this method has its limitations, notably its vulnerability to…

Portfolio Management · Quantitative Finance 2023-11-27 Kwong Yu Chong

We propose a new prediction method for multivariate linear regression problems where the number of features is less than the sample size but the number of outcomes is extremely large. Many popular procedures, such as penalized regression…

Methodology · Statistics 2021-04-20 Yihe Wang , Sihai Dave Zhao

The classical alternating minimization (or projection) algorithm has been successful in the context of solving optimization problems over two variables. The iterative nature and simplicity of the algorithm has led to its application to many…

Information Theory · Computer Science 2010-08-24 Urs Niesen , Devavrat Shah , Gregory Wornell

The importance of interpretability of machine learning models has been increasing due to emerging enterprise predictive analytics, threat of data privacy, accountability of artificial intelligence in society, and so on. Piecewise linear…

Artificial Intelligence · Computer Science 2017-11-08 Masato Asahara , Ryohei Fujimaki

In (exploratory) factor analysis, the loading matrix is identified only up to orthogonal rotation. For identifiability, one thus often takes the loading matrix to be lower triangular with positive diagonal entries. In Bayesian inference, a…

Methodology · Statistics 2014-09-29 Dennis Leung , Mathias Drton

Modern approaches to perform Bayesian variable selection rely mostly on the use of shrinkage priors. That said, an ideal shrinkage prior should be adaptive to different signal levels, ensuring that small effects are ruled out, while keeping…

Methodology · Statistics 2024-11-14 Santiago Marin , Bronwyn Loong , Anton H. Westveld

Machine learning models have achieved widespread success but often inherit and amplify historical biases, resulting in unfair outcomes. Traditional fairness methods typically impose constraints at the prediction level, without addressing…

Machine Learning · Statistics 2026-02-10 Enze Shi , Pankaj Bhagwat , Zhixian Yang , Linglong Kong , Bei Jiang

Factor models are a very efficient way to describe high dimensional vectors of data in terms of a small number of common relevant factors. This problem, which is of fundamental importance in many disciplines, is usually reformulated in…

Optimization and Control · Mathematics 2018-06-13 Valentina Ciccone , Augusto Ferrante , Mattia Zorzi

In many applications of finance, biology and sociology, complex systems involve entities interacting with each other. These processes have the peculiarity of evolving over time and of comprising latent factors, which influence the system…

Machine Learning · Statistics 2018-08-03 Federico Tomasi , Veronica Tozzo , Saverio Salzo , Alessandro Verri

Modeling and characterizing multiple factors is perhaps the most important step in achieving excess returns over market benchmarks. Both academia and industry are striving to find new factors that have good explanatory power for future…

Computational Finance · Quantitative Finance 2022-10-31 Zikai Wei , Bo Dai , Dahua Lin

Consider a regression or some regression-type model for a certain response variable where the linear predictor includes an ordered factor among the explanatory variables. The inclusion of a factor of this type can take place is a few…

Methodology · Statistics 2023-11-27 Adelchi Azzalini

Matrix factorization (MF) has become a common approach to collaborative filtering, due to ease of implementation and scalability to large data sets. Two existing drawbacks of the basic model is that it does not incorporate side information…

Machine Learning · Statistics 2014-07-30 Cody Severinski , Ruslan Salakhutdinov

This paper introduces factored conditional filters, new filtering algorithms for simultaneously tracking states and estimating parameters in high-dimensional state spaces. The conditional nature of the algorithms is used to estimate…

Artificial Intelligence · Computer Science 2024-07-10 Dawei Chen , Samuel Yang-Zhao , John Lloyd , Kee Siong Ng

In the framework of model-based clustering, a model allowing several latent class variables is proposed. This model assumes that the distribution of the observed data can be factorized into several independent blocks of variables. Each…

Methodology · Statistics 2018-01-23 Matthieu Marbac , Vincent Vandewalle

Connectivity estimation is challenging in the context of high-dimensional data. A useful preprocessing step is to group variables into clusters, however, it is not always clear how to do so from the perspective of connectivity estimation.…

Machine Learning · Statistics 2018-05-25 Ricardo Pio Monti , Aapo Hyvärinen