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Fused LASSO as Non-Crossing Quantile Regression

Tibor Szendrei, Arnab Bhattacharjee, Mark E. Schaffer

arXiv 20 Mar 2024 · Econometrics · 1 citations (OpenAlex)

arXiv:2403.14036 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Growth-at-Risk is vital for empirical macroeconomics but is often suspect to quantile crossing due to data limitations. While existing literature addresses this through post-processing of the fitted quantiles, these methods do not correct the estimated coefficients. We advocate for imposing non-crossing constraints during estimation and demonstrate their equivalence to fused LASSO with quantile-specific shrinkage parameters. By re-examining Growth-at-Risk through an interquantile shrinkage lens, we achieve improved left-tail forecasts and better identification of variables that drive quantile variation. We show that these improvements have ramifications for policy tools such as Expected Shortfall and Quantile Local Projections.

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
1Adrian, T., N. Boyarchenko, and D. Giannone (2019) Vulnerable growth1.000155100%
2Chernozhukov, V., I. Fernández-Val, and A. Galichon (2010) Quantile and probability curves without crossing1.00064100%
3Szendrei, T. and K. Varga (2023) Revisiting vulnerable growth in the euro area: Identifying the role of financial conditions in the distribution self1.00053100%
4Bondell, H. D., B. J. Reich, and H. Wang (2010) Noncrossing quantile regression curve estimation0.98828696%
5Koenker, R. and G. Bassett (1978) Regression quantiles0.9416383%
6Jiang, L., H. J. Wang, and H. D. Bondell (2013) Interquantile shrinkage in regression models0.9285480%
7Carriero, A., T. E. Clark, and M. Marcellino (2025) Specification choices in quantile regression for empirical macroeconomics0.87482100%
8Ruzicka, J (2021) Quantile local projections: Identification, smooth estimation, and inference0.87462100%
9Koenker, R (2005) Quantile regression0.81142100%
10Jiang, L., H. D. Bondell, and H. J. Wang (2014) Interquantile shrinkage and variable selection in quantile regression0.7373367%

Showing the top 10 of 44 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
1MIDAS-QR with 2-Dimensional Structure0.87492
2Momentum Informed Inflation-at-Risk0.87462
3Joint Quantile Shrinkage: A State-Space Approach toward Non-Crossing Bayesian Quantile Models0.73732
4A Roof Over Risk: A House Price-at-Risk Framework for Hungary0.40511