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Variational Bayes in State Space Models: Inferential and Predictive Accuracy

David T. Frazier, Ruben Loaiza-Maya, Gael M. Martin

arXiv 23 Jun 2021 · Statistics — Methodology · publishedJournal of Computational and Graphical Statistics (2022) · 14 citations (OpenAlex)

arXiv:2106.12262 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Using theoretical and numerical results, we document the accuracy of commonly applied variational Bayes methods across a range of state space models. The results demonstrate that, in terms of accuracy on fixed parameters, there is a clear hierarchy in terms of the methods, with approaches that do not approximate the states yielding superior accuracy over methods that do. We also document numerically that the inferential discrepancies between the various methods often yield only small discrepancies in predictive accuracy over small out-of-sample evaluation periods. Nevertheless, in certain settings, these predictive discrepancies can become meaningful over a longer out-of-sample period. This finding indicates that the invariance of predictive results to inferential inaccuracy, which has been an oft-touted point made by practitioners seeking to justify the use of variational inference, is not ubiquitous and must be assessed on a case-by-case basis.

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51
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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
1Westling, T. and McCormick, T (2019) Beyond prediction: A framework for inference with variational approximations in mixture models1.00053100%
2Koop, G. and Korobilis, D (2020) Bayesian dynamic variable selection in high dimensions0.9285380%
3Chan, J. C. and Yu, X (2020) Fast and accurate variational inference for large Bayesian vars with stochastic volatility0.8947571%
4Loaiza-Maya, R., Smith, M. S., Nott, D. J., and Danaher, P. J (2021) Fast and accurate variational inference for models with many latent variables self0.8229556%
5Tran, M.-N., Nott, D. J., and Kohn, R (2017) Variational Bayes with intractable likelihood0.81142100%
6Quiroz, M., Nott, D. J., and Kohn, R (2018) Gaussian variational approximation for high-dimensional state space models0.79412550%
7Lancaster, T (2000) The incidental parameter problem since 19480.64422100%
8Carter, C. K. and Kohn, R (1994) On Gibbs sampling for state space models0.5113233%
9Primiceri, G. E (2005) Time varying structural vector autoregressions and monetary policy0.5113233%
10Blei, D. M., Kucukelbir, A., and McAuliffe, J. D (2017) Variational inference: A review for statisticians0.5112250%

Showing the top 10 of 51 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
1Efficient variational approximations for state space models0.64422
2Bayesian Forecasting in Economics and Finance: A Modern Review0.40511
3Nonlinearities in Macroeconomic Tail Risk through the Lens of Big Data Quantile Regressions0.40511
4myblue Large Skew-t Copula Models and Asymmetric Dependence in Intraday Equity Returns0.40511