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Hierarchical Regularizers for Mixed-Frequency Vector Autoregressions

Alain Hecq, Marie Ternes, Ines Wilms

arXiv 23 Feb 2021 · Econometrics · publishedJournal of Computational and Graphical Statistics (2022) · 3 citations (OpenAlex)

arXiv:2102.11780 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Mixed-frequency Vector AutoRegressions (MF-VAR) model the dynamics between variables recorded at different frequencies. However, as the number of series and high-frequency observations per low-frequency period grow, MF-VARs suffer from the "curse of dimensionality". We curb this curse through a regularizer that permits hierarchical sparsity patterns by prioritizing the inclusion of coefficients according to the recency of the information they contain. Additionally, we investigate the presence of nowcasting relations by sparsely estimating the MF-VAR error covariance matrix. We study predictive Granger causality relations in a MF-VAR for the U.S. economy and construct a coincident indicator of GDP growth. Supplementary Materials for this article are available online.

Citation extraction

57
references
90
in-text mentions
57
distinct cited
2
self-citations
13,853
main-text words

appendix boundary found by appendix_command · 84% 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
1Cimadomo, J., D. Giannone, M. Lenza, F. Monti, and A. Sokol (2021) Nowcasting with large Bayesian vector autoregressions1.00074100%
2Ghysels, E (2016) Macroeconomics and the reality of mixed frequency data0.87452100%
3Götz, T. B., A. Hecq, and S. Smeekes (2016) Testing for Granger causality in large mixed-frequency VARs0.84333100%
4Babii, A., E. Ghysels, and J. Striaukas (2021) Machine learning time series regressions with an application to nowcasting0.81142100%
5Götz, T. B. and A. Hecq (2014) Nowcasting causality in mixed frequency vector autoregressive models0.73732100%
6Nicholson, W. B., I. Wilms, J. Bien, and D. S. Matteson (2020) High dimensional forecasting via interpretable vector autoregression0.73732100%
7Paccagnini, A. and F. Parla (2021) Identifying high-frequency shocks with Bayesian mixed-frequency VARs0.73732100%
8Derimer, M., F. X. Diebold, L. Liu, and K. Yilmaz (2018) Estimating Global Bank Network Connectedness0.64422100%
9Hsu, N.-J., H.-L. Hung, and Y.-M. Chang (2008) Subset selection for vector autoregressive processes using lasso0.64422100%
10McCracken, M. and S. Ng (2016) FRED-MD: a monthly database for macroeconomic research0.5854175%

Showing the top 10 of 57 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
1Hierarchical Regularizers for Reverse Unrestricted Mixed Data Sampling Regressions0.87462
2Sparse Tree-Based Aggregation for Time Series Regressions0.64422
3Sparse Temporal Disaggregation0.40511