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Multidimensional dynamic factor models

Matteo Barigozzi, Filippo Pellegrino

arXiv 29 Jan 2023 · Econometrics · 2 citations (OpenAlex)

arXiv:2301.12499 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper generalises dynamic factor models for multidimensional dependent data. In doing so, it develops an interpretable technique to study complex information sources ranging from repeated surveys with a varying number of respondents to panels of satellite images. We specialise our results to model microeconomic data on US households jointly with macroeconomic aggregates. This results in a powerful tool able to generate localised predictions, counterfactuals and impulse response functions for individual households, accounting for traditional time-series complexities depicted in the state-space literature. The model is also compatible with the growing focus of policymakers for real-time economic analysis as it is able to process observations online, while handling missing values and asynchronous data releases.

Citation extraction

28
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56
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14,405
main-text words

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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
1F. Pellegrino (2023) Factor-augmented tree ensembles0.874122100%
2M. Barigozzi and M. Luciani (2020) Quasi maximum likelihood estimation and inference of large approximate dynamic factor models via the em algorithm0.84333100%
3D. Giannone, L. Reichlin, and D. Small (2008) Nowcasting: The real-time informational content of macroeconomic data0.84333100%
4F. Pellegrino (2002) Selecting time-series hyperparameters with the artificial jackknife0.81142100%
5M. Bańbura and M. Modugno (2014) Maximum likelihood estimation of factor models on datasets with arbitrary pattern of missing data0.73732100%
6J. Bai and P. Wang (2015) Identification and bayesian estimation of dynamic factor models0.64422100%
7T. Hasenzagl, F. Pellegrino, L. Reichlin, and G. Ricco (2022) A model of the fed's view on inflation0.64422100%
8T. Hasenzagl, F. Pellegrino, L. Reichlin, and G. Ricco (2022) Monitoring the economy in real time: Trends and gaps in real activity and prices0.64422100%
9X.-L. Meng and D. B. Rubin (1993) Maximum likelihood estimation via the ecm algorithm: A general framework0.64422100%
10R. H. Shumway and D. S. Stoffer (1982) An approach to time series smoothing and forecasting using the em algorithm0.64422100%

Showing the top 10 of 28 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
1Quasi Maximum Likelihood Estimation of High-Dimensional Factor Models: A Critical Review0.40511