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Nowcasting with Mixed Frequency Data Using Gaussian Processes

Niko Hauzenberger, Massimiliano Marcellino, Michael Pfarrhofer, Anna Stelzer

arXiv 16 Feb 2024 · Econometrics · 4 citations (OpenAlex)

arXiv:2402.10574 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop Bayesian machine learning methods for mixed data sampling (MIDAS) regressions. This involves handling frequency mismatches and specifying functional relationships between many predictors and the dependent variable. We use Gaussian processes (GPs) and compress the input space with structured and unstructured MIDAS variants. This yields several versions of GP-MIDAS with distinct properties and implications, which we evaluate in short-horizon now- and forecasting exercises with both simulated data and data on quarterly US output growth and inflation in the GDP deflator. It turns out that our proposed framework leverages macroeconomic Big Data in a computationally efficient way and offers gains in predictive accuracy compared to other machine learning approaches along several dimensions.

Citation extraction

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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
1Mogliani M, and Simoni A (2021) Bayesian MIDAS penalized regressions: estimation, selection, and prediction1.00064100%
2Babii A, Ghysels E, and Striaukas J (2022) Machine learning time series regressions with an application to nowcasting0.9568588%
3Mogliani M, and Simoni A (2024) Bayesian Bi-level Sparse Group Regressions for Macroeconomic Forecasting0.9416483%
4Clark TE, Huber F, Koop G, Marcellino M, and Pfarrhofer M (2023) Tail forecasting with multivariate bayesian additive regression trees0.92843100%
5Ghysels E, Sinko A, and Valkanov R (2007) MIDAS regressions: Further results and new directions0.92843100%
6Chipman HA, George EI, and McCulloch RE (2010) BART: Bayesian additive regression trees0.8434375%
7Clark TE, Huber F, Koop G, and Marcellino M (2024) a), Forecasting US inflation using Bayesian nonparametric models0.84333100%
8Chan JCC, Poon A, and Zhu D (2024) Time-Varying Parameter MIDAS Models: Application to Nowcasting US Real GDP0.7373367%
9Guhaniyogi R, and Dunson DB (2016) Compressed Gaussian process for manifold regression0.73732100%
10Andreou E, Ghysels E, and Kourtellos A (2010) Regression models with mixed sampling frequencies0.64422100%

Showing the top 10 of 52 scored citations.

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Citing paperIntensityMentionsSections
10.25cm \@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize\@setfontsize21.92421.92421.92421.92421.92421.92421.92421.92421.92421.924 dpd Dual Interpretation of Machine Learning Forecasts -0.5cm0.40511