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Fast Estimation of Bayesian State Space Models Using Amortized Simulation-Based Inference

Ramis Khabibullin, Sergei Seleznev

arXiv 13 Oct 2022 · Econometrics · 1 citations (OpenAlex)

arXiv:2210.07154 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper presents a fast algorithm for estimating hidden states of Bayesian state space models. The algorithm is a variation of amortized simulation-based inference algorithms, where a large number of artificial datasets are generated at the first stage, and then a flexible model is trained to predict the variables of interest. In contrast to those proposed earlier, the procedure described in this paper makes it possible to train estimators for hidden states by concentrating only on certain characteristics of the marginal posterior distributions and introducing inductive bias. Illustrations using the examples of the stochastic volatility model, nonlinear dynamic stochastic general equilibrium model, and seasonal adjustment procedure with breaks in seasonality show that the algorithm has sufficient accuracy for practical use. Moreover, after pretraining, which takes several hours, finding the posterior distribution for any dataset takes from hundredths to tenths of a second.

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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
1Lueckmann, J.-M., Boelts, J., Greenberg, D., Goncalves, P., and Mack… (2021) Benchmarking Simulation-Based Inference1.00054100%
2Lueckmann, J.-M., Goncalves, P. J., Bassetto, G., Öcal, K., Nonnenma… (2017) Flexible Statistical Inference for Mechanistic Models of Neural Dynamics0.8434475%
3Kim, S., Shephard, N., and Chib, S (1998) Stochastic Volatility: Likelihood Inference and Comparison with ARCH Models0.8435360%
4Papamakarios, G. and Murray, I (2016) Fast $$-free Inference of Simulation Models with Bayesian Conditional Density Estimation0.73732100%
5Diebold, F. X., Schorfheide, F., and Shin, M (2017) Real-time Forecast Evaluation of DSGE Models with Stochastic Volatility0.6444250%
6Cranmer, K., Brehmer, J., and Louppe, G (2020) The Frontier of Simulation-Based Inference0.64422100%
7Deli Gatti, D. and Grazzini, J (2020) Rising to the Challenge: Bayesian Estimation and Forecasting Techniques for Macroeconomic Agent Based Models0.64422100%
8Tan, L. S., Bhaskaran, A., and Nott, D. J (2020) Conditionally Structured Variational Gaussian Approximation with Importance Weights0.58531100%
9Anderson, G. and Moore, G (1985) A Linear Algebraic Procedure for Solving Linear Perfect Foresight Models0.5112250%
10Justiniano, A. and Primiceri, G. E (2008) The Time-Varying Volatility of Macroeconomic Fluctuations0.5112250%

Showing the top 10 of 85 scored citations.