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Sparse Bayesian State-Space and Time-Varying Parameter Models

Sylvia Frühwirth-Schnatter, Peter Knaus

arXiv 25 Jul 2022 · Econometrics · 2 citations (OpenAlex)

arXiv:2207.12147 · PDF · DOI · OpenAlex · Extracted main text

Abstract

In this chapter, we review variance selection for time-varying parameter (TVP) models for univariate and multivariate time series within a Bayesian framework. We show how both continuous as well as discrete spike-and-slab shrinkage priors can be transferred from variable selection for regression models to variance selection for TVP models by using a non-centered parametrization. We discuss efficient MCMC estimation and provide an application to US inflation modeling.

Citation extraction

52
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101
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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
1A. Cadonna, S. Frühwirth-Schnatter, and P. Knaus (2020) Triple the gamma – A unifying shrinkage prior for variance and variable selection in sparse state space and TVP models1.000144100%
2S. Frühwirth-Schnatter and H. Wagner (2010) Stochastic model specification search for Gaussian and partially non-Gaussian state space models1.000123100%
3A. Bitto and S. Frühwirth-Schnatter (2019) Achieving shrinkage in a time-varying parameter model framework1.000104100%
4M. Belmonte, G. Koop, and D. Korobolis (2014) Hierarchical shrinkage in time-varying parameter models0.92843100%
5C.M. Carvalho, N.G. Polson, and J.G. Scott (2009) Handling sparsity via the horseshoe0.73732100%
6A.C. Harvey (1989) Forecasting, Structural Time Series Models and the Kalman Filter0.73732100%
7A. Bhadra, J. Datta, N.G. Polson, and B. Willard (2019) Lasso meets horseshoe: A survey0.64422100%
8C.M. Carvalho, N.G. Polson, and J.G. Scott (2010) The horseshoe estimator for sparse signals0.64422100%
9C.K. Carter and R. Kohn (1994) On Gibbs sampling for state space models0.64422100%
10S. Frühwirth-Schnatter (2004) Computationally efficient Bayesian parameter estimation for state space models based on reparameterizations0.64422100%

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
1Forecasting macroeconomic data with Bayesian VARs: Sparse or dense? It depends!0.40511