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Detecting Structural Breaks in Foreign Exchange Markets by using the group LASSO technique

Mikio Ito

arXiv 7 Feb 2022 · Econometrics

arXiv:2202.02988 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article proposes an estimation method to detect breakpoints for linear time series models with their parameters that jump scarcely. Its basic idea owes the group LASSO (group least absolute shrinkage and selection operator). The method practically provides estimates of such time-varying parameters of the models. An example shows that our method can detect each structural breakpoint's date and magnitude.

Citation extraction

9
references
17
in-text mentions
9
distinct cited
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self-citations
2,688
main-text words

appendix boundary found by appendix_titled_section at “Appendix” · 97% 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
1Ito, M., Noda, A., and Wada, T (2021) Time-Varying Comovement of Foreign Exchange Markets: A GLS-Based Time-Varying Model Approach self0.87482100%
2Ito, M (2019) An Estimation Method for State Space Models using generalized LASSO Techniques, Reported in 94th annual conference of WEAI self0.64422100%
3Basu, S., Michailidis, G., et al (2015) Regularized estimation in sparse high-dimensional time series models0.40511100%
4Chan, N. H., Yau, C. Y., and Zhang, R.-M (2014) Group LASSO for structural break time series0.40511100%
5Michailidis, G. and d’Alché Buc, F (2013) Autoregressive models for gene regulatory network inference: Sparsity, stability and causality issues0.40511100%
6Swamy, P., Tavlas, G. S., Hall, S. G., and Hondroyiannis, G (2010) Estimation of parameters in the presence of model misspecification and measurement error0.40511100%
7Tibshirani, R. J (2011) The solution path of the generalized lasso0.40511100%
8Tibshirani, R., Wainwright, M., and Hastie, T (2015) Statistical learning with sparsity: the lasso and generalizations0.40511100%
9Yuan, M. and Lin, Y (2006) Model selection and estimation in regression with grouped variables0.40511100%

Showing the top 9 of 9 scored citations.