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We introduce a new criterion to determine the order of an autoregressive model fitted to time series data. It has the benefits of the two well-known model selection techniques, the Akaike information criterion and the Bayesian information…

Statistics Theory · Mathematics 2016-08-25 Jie Ding , Vahid Tarokh , Yuhong Yang

Transient recurring phenomena are ubiquitous in many scientific fields like neuroscience and meteorology. Time inhomogenous Vector Autoregressive Models (VAR) may be used to characterize peri-event system dynamics associated with such…

Machine Learning · Statistics 2022-05-02 Kaidi Shao , Nikos K. Logothetis , Michel Besserve

The Schwarz or Bayesian information criterion (BIC) is one of the most widely used tools for model comparison in social science research. The BIC however is not suitable for evaluating models with order constraints on the parameters of…

Methodology · Statistics 2019-05-01 Joris Mulder , Adrian E. Raftery

This paper considers the order estimation problem of stochastic autoregressive exogenous input (ARX) systems by using quantized data. Based on the least squares algorithm and inspired by the control systems information criterion (CIC), a…

Statistics Theory · Mathematics 2025-06-03 Lida Jing

The advances and development of various machine learning techniques has lead to practical solutions in various areas of science, engineering, medicine and finance. The great choice of algorithms, their implementations and libraries has…

Statistical Finance · Quantitative Finance 2024-10-04 Roman Belavkin , Panos Pardalos , Jose Principe

A causal vector autoregressive (CVAR) model is introduced for weakly stationary multivariate processes, combining a recursive directed graphical model for the contemporaneous components and a vector autoregressive model longitudinally.…

While the Bayesian Information Criterion (BIC) and Akaike Information Criterion (AIC) are powerful tools for model selection in linear regression, they are built on different prior assumptions and thereby apply to different data generation…

Methodology · Statistics 2017-12-15 MB de Kock , HC Eggers

Value-at-Risk is one of the most popular risk management tools in the financial industry. Over the past 20 years several attempts to include VaR in the portfolio selection process have been proposed. However, using VaR as a risk measure in…

Portfolio Management · Quantitative Finance 2021-11-19 Francesco Cesarone , Manuel L Martino , Fabio Tardella

Model order selection (MOS) in linear regression models is a widely studied problem in signal processing. Techniques based on information theoretic criteria (ITC) are algorithms of choice in MOS problems. This article proposes a novel…

Information Theory · Computer Science 2019-01-30 Sreejith Kallummil , Sheetal Kalyani

We test three common information criteria (IC) for selecting the order of a Hawkes process with an intensity kernel that can be expressed as a mixture of exponential terms. These processes find application in high-frequency financial data…

Statistical Finance · Quantitative Finance 2017-04-05 J. M. Chen , A. G. Hawkes , E. Scalas , M. Trinh

We consider the problem of choosing the optimal (in the sense of mean-squared prediction error) multistep predictor for an autoregressive (AR) process of finite but unknown order. If a working AR model (which is possibly misspecified) is…

Statistics Theory · Mathematics 2007-06-13 Ching-Kang Ing

We study model selection by the Bayesian information criterion (BIC) in fixed-dimensional exploratory factor analysis over a fixed finite family of compact covariance classes. Our main result shows that the BIC is strongly consistent for…

Statistics Theory · Mathematics 2026-04-10 Hien Duy Nguyen , Kei Hirose

Principal component analysis (PCA) is the most commonly used statistical procedure for dimension reduction. An important issue for applying PCA is to determine the rank, which is the number of dominant eigenvalues of the covariance matrix.…

Methodology · Statistics 2020-08-06 Hung Hung , Su-Yun Huang , Ching-Kang Ing

This paper motivates and develops a novel and focused approach to variable selection in linear regression models. For estimating the regression mean $\mu=\E\,(Y\midd x_0)$, for the covariate vector of a given individual, there is a list of…

Methodology · Statistics 2026-02-19 Nils Lid Hjort

We propose an indirect inference strategy for estimating heterogeneous-agent business cycle models with micro data. At its heart is a first-order vector autoregression that is grounded in linear filtering theory as the cross-section grows…

General Economics · Economics 2024-02-20 Man Chon Iao , Yatheesan J. Selvakumar

An Orthogonal Least Squares (OLS) based feature selection method is proposed for both binomial and multinomial classification. The novel Squared Orthogonal Correlation Coefficient (SOCC) is defined based on Error Reduction Ratio (ERR) in…

Machine Learning · Computer Science 2021-11-09 Sikai Zhang , Zi-Qiang Lang

Autoregressive models (ARMs) have become the workhorse for sequence generation tasks, since many problems can be modeled as next-token prediction. While there appears to be a natural ordering for text (i.e., left-to-right), for many data…

Machine Learning · Computer Science 2025-07-15 Zhe Wang , Jiaxin Shi , Nicolas Heess , Arthur Gretton , Michalis K. Titsias

We propose a novel variational Bayes approach to estimate high-dimensional vector autoregression (VAR) models with hierarchical shrinkage priors. Our approach does not rely on a conventional structural VAR representation of the parameter…

Econometrics · Economics 2023-07-03 Mauro Bernardi , Daniele Bianchi , Nicolas Bianco

In this article, we propose the fractional lower order covariance method (FLOC) for estimating the parameters of vector autoregressive process (VAR) of order $p$, $p\geq 1$ with symmetric stable noise. Further, we show the efficiency,…

Methodology · Statistics 2021-04-16 Aastha M. Sathe , N. S. Upadhye

Finite mixture models are ubiquitous in modern statistical modeling, and a recurring practical issue is choosing the model order. In \citet[Sankhy\=a Series A, \textbf62, pp. 49--66]{keribin2000consistent}, the Bayesian information…

Statistics Theory · Mathematics 2026-02-03 Hien Duy Nguyen , TrungTin Nguyen
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