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State-dependent local projections (LPs) are widely used to estimate how impulse responses to exogenous aggregate shocks vary as a function of observable state variables, yet their causal interpretation remains unclear. We show that LPs…

Econometrics · Economics 2026-05-19 Joel M. David , Raffaella Giacomini , Xiyu Jiao , Weining Wang

It is often of interest to perform clustering on longitudinal data, yet it is difficult to formulate an intuitive model for which estimation is computationally feasible. We propose a model-based clustering method for clustering objects that…

Methodology · Statistics 2020-05-19 Daniel K. Sewell , Yuguo Chen , William Bernhard , Tracy Sulkin

We develop a Bayesian framework for the efficient estimation of impulse responses using Local Projections (LPs) with instrumental variables. It accommodates multiple shocks and instruments, accounts for autocorrelation in multi-step…

Econometrics · Economics 2025-08-11 Florian Huber , Christian Matthes , Michael Pfarrhofer

Spatial regression or geographically weighted regression models have been widely adopted to capture the effects of auxiliary information on a response variable of interest over a region. In contrast, relationships between response and…

Methodology · Statistics 2021-04-29 Shonosuke Sugasawa , Daisuke Murakami

This paper advances the local projections (LP) method by addressing its inefficiency in high-frequency economic and financial data with volatility clustering. We incorporate a generalized autoregressive conditional heteroskedasticity…

Econometrics · Economics 2025-03-05 Chew Lian Chua , David Gunawan , Sandy Suardi

Temporal point process is an expressive tool for modeling event sequences over time. In this paper, we take a reinforcement learning view whereby the observed sequences are assumed to be generated from a mixture of latent policies. The…

Machine Learning · Computer Science 2019-07-01 Weichang Wu , Junchi Yan , Xiaokang Yang , Hongyuan Zha

This paper describes an approach to simultaneously identify clusters and estimate cluster-specific regression parameters from the given data. Such an approach can be useful in learning the relationship between input and output when the…

Statistical Finance · Quantitative Finance 2024-01-02 Udai Nagpal , Krishan Nagpal

This work introduces a new framework for modeling financial markets through an interpretable probabilistic state machine. By clustering historical returns based on momentum and risk features across multiple time horizons, we identify…

Computational Engineering, Finance, and Science · Computer Science 2025-10-02 Christian Oliva , Silviu Gabriel Tinjala

Local projections (LP) and vector autoregressions (VAR) are the two standard tools for impulse response analysis, but they often display a finite-sample trade-off: LP is typically less biased but more volatile, while VAR is more precise but…

Econometrics · Economics 2026-05-08 Chaoyi Chen , Elena Pesavento , Balazs Vonnak

A local projection model is defined by a set of linear regressions that account for the associations between exogenous variables and an endogenous variable observed at different time points. While it is standard practice to separately…

Methodology · Statistics 2020-07-14 Masahiro Tanaka

Continuous response variables often need to be transformed to meet regression modeling assumptions; however, finding the optimal transformation is challenging and results may vary with the choice of transformation. When a continuous…

Methodology · Statistics 2022-07-19 Yuqi Tian , Bryan E. Shepherd , Chun Li , Donglin Zeng , Jonathan J. Schildcrout

Model-based clustering is a powerful tool that is often used to discover hidden structure in data by grouping observational units that exhibit similar response values. Recently, clustering methods have been developed that permit…

Methodology · Statistics 2025-06-24 Sally Paganin , Garritt L. Page , Fernando Andrés Quintana

In the analysis of binary longitudinal data, it is of interest to model a dynamic relationship between a response and covariates as a function of time, while also investigating similar patterns of time-dependent interactions. We present a…

Methodology · Statistics 2023-04-11 Jinwon Sohn , Seonghyun Jeong , Young Min Cho , Taeyoung Park

We propose a method for estimating coefficients in multivariate regression when there is a clustering structure to the response variables. The proposed method includes a fusion penalty, to shrink the difference in fitted values from…

Machine Learning · Statistics 2018-03-28 Bradley S. Price , Ben Sherwood

This paper introduces a flexible local projection that generalizes the model by Jord\'a (2005) to a non-parametric setting using Bayesian Additive Regression Trees. Monte Carlo experiments show that our BART-LP model is able to capture…

Econometrics · Economics 2022-04-29 Haroon Mumtaz , Michele Piffer

Temporal data, obtained in the setting where it is only possible to observe one time point per experiment, is widely used in different research fields, yet remains insufficiently addressed from the statistical point of view. Such data often…

Methodology · Statistics 2025-03-10 Polina Arsenteva , Mohamed Amine Benadjaoud , Hervé Cardot

In this paper, we propose a novel method of model-based time series clustering with mixtures of general state space models (MSSMs). Each component of MSSMs is associated with each cluster. An advantage of the proposed method is that it…

Machine Learning · Computer Science 2024-08-23 Ryoichi Ishizuka , Takashi Imai , Kaoru Kawamoto

The paper offers a unified approach to the study of three locally adaptive estimation methods in the context of univariate time series from both theoretical and empirical points of view. A general procedure for the computation of critical…

Statistics Theory · Mathematics 2008-12-03 Mstislav Elagin

In various applications with large spatial regions, the relationship between the response variable and the covariates is expected to exhibit complex spatial patterns. We propose a spatially clustered varying coefficient model, where the…

Methodology · Statistics 2020-07-21 Fangzheng Lin , Yanlin Tang , Huichen Zhu , Zhongyi Zhu

We investigate the parameter estimation of regression models with fixed group effects, when the group variable is missing while group related variables are available. This problem involves clustering to infer the missing group variable…

Methodology · Statistics 2020-12-29 Matthieu Marbac , Mohammed Sedki , Christophe Biernacki , Vincent Vandewalle
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