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Recent Developments on Factor Models and its Applications in Econometric Learning

Jianqing Fan, Kunpeng Li, Yuan Liao

arXiv 21 Sep 2020 · Econometrics · publishedAnnual Review of Financial Economics (2021) · 23 citations (OpenAlex)

arXiv:2009.10103 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper makes a selective survey on the recent development of the factor model and its application on statistical learnings. We focus on the perspective of the low-rank structure of factor models, and particularly draws attentions to estimating the model from the low-rank recovery point of view. The survey mainly consists of three parts: the first part is a review on new factor estimations based on modern techniques on recovering low-rank structures of high-dimensional models. The second part discusses statistical inferences of several factor-augmented models and applications in econometric learning models. The final part summarizes new developments dealing with unbalanced panels from the matrix completion perspective.

Citation extraction

119
references
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in-text mentions
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distinct cited
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self-citations
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main-text words

appendix boundary found by appendix_command · 85% of the source is main text. Read the extracted text to check this.

Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Fan, J. and Liao, Y (2020) Learning latent factors from diversified projections and its applications to over-estimated and weak factors self0.87452100%
2Fan, J., Li, R., Zhang, C.-H. and Zou, H (2020) Statistical Foundations of Data Science self0.81142100%
3Giglio, S., Liao, Y. and Xiu, D (2020) Thousands of alpha tests self0.81142100%
4Bai, J. and Li, K (2012) Statistical analysis of factor models of high dimension self0.73732100%
5Bai, J. and Ng, S (2009) Boosting diffusion indices0.69361100%
6Lee, S., Liao, Y., Seo, M. and Y., S (2020) Factor-driven two-regime regression self0.69351100%
7Su, L., Miao, K. and Jin, S (2019) On factor models with random missing: Em estimation, inference, and cross validation0.69351100%
8Agarwal, A., Negahban, S., Wainwright, M. J. et al (2012) Noisy matrix decomposition via convex relaxation: Optimal rates in high dimensions0.64441100%
9Bai, J. and Ng, S (2019) Matrix completion, counterfactuals, and factor analysis of missing data0.64441100%
10Chen, Y., Fan, J., Ma, C. and Yan, Y (2019) Inference and uncertainty quantification for noisy matrix completion self0.64441100%

Showing the top 10 of 122 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Inference in Unbalanced Panel Data Models with Interactive Fixed Effects0.87463
2When can weak latent factors be statistically inferred?0.64422
3Fixed-order PCA: Theory for Overestimated Factor Models0.51122
4Estimation of Characteristics-based Quantile Factor Models0.40511
5Estimation and Inference for CP Tensor Factor Models0.40511
6Factors in Fashion: Factor Analysis towards the Mode0.40511
7Learning Nonlinear Factor Models with Unknown Monotone Links from Incomplete and Noisy Data0.40511