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Bayesian Nonlinear Regression using Sums of Simple Functions

Florian Huber

arXiv 4 Dec 2023 · Econometrics · 1 citations (OpenAlex)

arXiv:2312.01881 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This paper proposes a new Bayesian machine learning model that can be applied to large datasets arising in macroeconomics. Our framework sums over many simple two-component location mixtures. The transition between components is determined by a logistic function that depends on a single threshold variable and two hyperparameters. Each of these individual models only accounts for a minor portion of the variation in the endogenous variables. But many of them are capable of capturing arbitrary nonlinear conditional mean relations. Conjugate priors enable fast and efficient inference. In simulations, we show that our approach produces accurate point and density forecasts. In a real-data exercise, we forecast US macroeconomic aggregates and consider the nonlinear effects of financial shocks in a large-scale nonlinear VAR.

Citation extraction

42
references
62
in-text mentions
42
distinct cited
4
self-citations
11,233
main-text words

appendix boundary found by appendix_command · 87% 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
1Clark, Todd E, Florian Huber, Gary Koop, Massimiliano Marcellino, an… (2023) Tail forecasting with multivariate bayesian additive regression trees self1.00063100%
2Chipman, Hugh A., Edward I. George, and Robert E. McCulloch (2010) BART: Bayesian additive regression trees1.00053100%
3Gilchrist, Simon and Egon Zakrajsek (2012) Credit spreads and business cycle fluctuations0.9285380%
4Lubrano, Michel (2001) Smooth transition garch models: A bayesian perspective0.64422100%
5McCracken, Michael and Serena Ng (2020) Fred-qd: A quarterly database for macroeconomic research0.5112250%
6Goulet Coulombe, Philippe (2020) The macroeconomy as a random forest0.51121100%
7Barnichon, Regis, Christian Matthes, and Alexander Ziegenbein (2022) Are the effects of financial market disruptions big or small?0.51121100%
8Cybenko, George (1989) Approximation by superpositions of a sigmoidal function0.51121100%
9Huber, Florian, Gary Koop, Luca Onorante, Michael Pfarrhofer, and Jo… (2023) Nowcasting in a pandemic using non-parametric mixed frequency vars self0.51121100%
10Mumtaz, Haroon and Michele Piffer (2022) Impulse response estimation via flexible local projections0.51121100%

Showing the top 10 of 42 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
1Asymmetries in Financial Spillovers0.81142