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In this study, we investigate estimation and inference on a low-dimensional causal parameter in the presence of high-dimensional controls in an instrumental variable quantile regression. Our proposed econometric procedure builds on the…

Econometrics · Economics 2021-02-23 Jau-er Chen , Chien-Hsun Huang , Jia-Jyun Tien

Many economic panel and dynamic models, such as rational behavior and Euler equations, imply that the parameters of interest are identified by conditional moment restrictions. We introduce a novel inference method without any prior…

Econometrics · Economics 2024-11-01 Xiaohong Chen , Sokbae Lee , Myung Hwan Seo , Myunghyun Song

This paper studies macroeconomic forecasting and variable selection using a folded-concave penalized regression with a very large number of predictors. The penalized regression approach leads to sparse estimates of the regression…

Applications · Statistics 2017-03-07 Yoshimasa Uematsu , Shinya Tanaka

We develop new methods to integrate experimental and observational data in causal inference. While randomized controlled trials offer strong internal validity, they are often costly and therefore limited in sample size. Observational data,…

Econometrics · Economics 2025-11-04 Xuelin Yang , Licong Lin , Susan Athey , Michael I. Jordan , Guido W. Imbens

Many economic variables feature changes in their conditional mean and volatility, and Time Varying Vector Autoregressive Models are often used to handle such complexity in the data. Unfortunately, when the number of series grows, they…

Econometrics · Economics 2022-01-19 G. Cubadda , S. Grassi , B. Guardabascio

Growing-dimensional data with likelihood unavailable are often encountered in various fields. This paper presents a penalized exponentially tilted likelihood (PETL) for variable selection and parameter estimation for growing dimensional…

Statistics Theory · Mathematics 2017-01-09 Nian-Sheng Tang , Xiao-Dong Yan , Pu-Ying Zhao

We propose a novel framework for modeling time-varying persistence in economic time series, allowing for smoothly evolving heterogeneity in shock dynamics. We leverage localized regression techniques to flexibly identify changes in…

General Finance · Quantitative Finance 2025-06-06 Jozef Barunik , Lukas Vacha

High-dimensional multivariate time series are challenging due to the dependent and high-dimensional nature of the data, but in many applications there is additional structure that can be exploited to reduce computing time along with…

Methodology · Statistics 2020-03-13 Michael Schweinberger , Sergii Babkin , Katherine Ensor

Policy inference plays an essential role in the contextual bandit problem. In this paper, we use empirical likelihood to develop a Bayesian inference method for the joint analysis of multiple contextual bandit policies in finite sample…

Machine Learning · Statistics 2026-02-12 Jiangrong Ouyang , Mingming Gong , Howard Bondell

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

This paper presents a general theoretical framework of penalized quasi-maximum likelihood (PQML) estimation in stationary multiple time series models when the number of parameters possibly diverges. We show the oracle property of the PQML…

Statistics Theory · Mathematics 2017-04-28 Yoshimasa Uematsu

Sparsity-inducing penalties are useful tools for variable selection and they are also effective for regression settings where the data are functions. We consider the problem of selecting not only variables but also decision boundaries in…

Methodology · Statistics 2020-06-01 Hidetoshi Matsui

Many recent developments in the high-dimensional statistical time series literature have centered around time-dependent applications that can be adapted to regularized least squares. Of particular interest is the lasso, which both serves to…

Methodology · Statistics 2020-10-16 William B. Nicholson , Xiaohan Yan

It is a market practice to express market-implied volatilities in some parametric form. The most popular parametrizations are based on or inspired by an underlying stochastic model, like the Heston model (SVI method) or the SABR model (SABR…

Mathematical Finance · Quantitative Finance 2026-01-06 Nicola F. Zaugg , Leonardo Perotti , Lech A. Grzelak

We propose a novel strategy for multivariate extreme value index estimation. In applications such as finance, volatility and risk present in the components of a multivariate time series are often driven by the same underlying factors, such…

Statistics Theory · Mathematics 2020-03-24 Joni Virta , Niko Lietzén , Lauri Viitasaari , Pauliina Ilmonen

The objective of this work is the investigation of complexity, asymmetry, stochasticity and non-linearity of the financial and economic systems by using the tools of statistical mechanics and information theory. More precisely, this thesis…

Statistical Finance · Quantitative Finance 2024-08-30 Rubina Zadourian

Combining information from multiple samples is often needed in biomedical and economic studies, but the differences between these samples must be appropriately taken into account in the analysis of the combined data. We study estimation for…

Methodology · Statistics 2018-08-14 Heng Shu , Zhiqiang Tan

Non-parametric methods avoid the problem of having to specify a particular data generating mechanism, but can be computationally intensive, reducing their accessibility for large data problems. Empirical likelihood, a non-parametric…

Computation · Statistics 2017-12-15 Adam Jaeger , Nicole Lazar

Causal effect moderation investigates how the effect of interventions (or treatments) on outcome variables changes based on observed characteristics of individuals, known as potential effect moderators. With advances in data collection,…

Methodology · Statistics 2024-11-26 Soham Bakshi , Walter Dempsey , Snigdha Panigrahi

We present a structured additive regression approach to model conditional densities given scalar covariates, where only samples of the conditional distributions are observed. This links our approach to distributional regression models for…

Methodology · Statistics 2025-10-17 Eva-Maria Maier , Alexander Fottner , Sonja Greven , Almond Stöcker