EconBase
← All papers

Efficient Score Computation and Expectation-Maximization Algorithm in Regime-Switching Models

Chaojun Li, Shi Qiu

arXiv 3 May 2022 · Econometrics · 1 citations (OpenAlex)

arXiv:2205.01565 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This study proposes an efficient algorithm for score computation for regime-switching models, and derived from which, an efficient expectation-maximization (EM) algorithm. Different from existing algorithms, this algorithm does not rely on the forward-backward filtering for smoothed regime probabilities, and only involves forward computation. Moreover, the algorithm to compute score is readily extended to compute the Hessian matrix.

Citation extraction

7
references
16
in-text mentions
7
distinct cited
0
self-citations
4,819
main-text words

appendix boundary found by none_found · 100% 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
1Hamilton, James D (1996) Specification testing in Markov-switching time-series models0.92843100%
2Psaradakis, Zacharias and Sola, Martin (1998) Finite-sample properties of the maximum likelihood estimator in autoregressive models with Markov switching0.84333100%
3Cappé, Olivier and Moulines, Eric and Rydén, Tobias (2005) Inference in Hidden Markov Models0.81142100%
4Kasahara, Hiroyuki and Shimotsu, Katsumi (2019) Asymptotic properties of the maximum likelihood estimator in regime switching econometric models0.64422100%
5Douc, Randal and Moulines, Eric and Ryden, Tobias (2004) Asymptotic properties of the maximum likelihood estimator in autoregressive models with Markov regime0.40511100%
6Hamilton, James D (1989) A new approach to the economic analysis of nonstationary time series and the business cycle0.40511100%
7Demian Pouzo AND Zacharias Psaradakis AND Martin Sola (2022) Maximum Likelihood Estimation in Markov Regime-Switching Models with Covariate-Dependent Transition Probabilities0.40511100%

Showing the top 7 of 7 scored citations.