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MIDAS-QR with 2-Dimensional Structure

Tibor Szendrei, Arnab Bhattacharjee, Mark E. Schaffer

arXiv 21 Jun 2024 · Econometrics

arXiv:2406.15157 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Mixed frequency data has been shown to improve the performance of growth-at-risk models in the literature. Most of the research has focused on imposing structure on the high-frequency lags when estimating MIDAS-QR models akin to what is done in mean models. However, only imposing structure on the lag-dimension can potentially induce quantile variation that would otherwise not be there. In this paper we extend the framework by introducing structure on both the lag dimension and the quantile dimension. In this way we are able to shrink unnecessary quantile variation in the high-frequency variables. This leads to more gradual lag profiles in both dimensions compared to the MIDAS-QR and UMIDAS-QR. We show that this proposed method leads to further gains in nowcasting and forecasting on a pseudo-out-of-sample exercise on US data.

Citation extraction

31
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124
in-text mentions
31
distinct cited
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11,674
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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
1Ferrara, L., M. Mogliani, and J.-G. Sahuc (2022) High-frequency monitoring of growth at risk1.000194100%
2Adrian, T., N. Boyarchenko, and D. Giannone (2019) Vulnerable growth1.000164100%
3Kohns, D. and T. Szendrei (2023) Horseshoe prior Bayesian quantile regression1.00063100%
4Mitchell, J., A. Poon, and D. Zhu (2022) Constructing density forecasts from quantile regressions: Multimodality in macrofinancial dynamics1.00063100%
5Xu, Q., M. Xu, C. Jiang, and W. Fu (2023) Mixed-frequency growth-at-risk with the midas-qr method: Evidence from china1.00063100%
6Szendrei, T., A. Bhattacharjee, and M. E. Schaffer (2024) Fused LASSO as non-crossing quantile regression self0.87492100%
7Lima, L. R., F. Meng, and L. Godeiro (2020) Quantile forecasting with mixed-frequency data0.87462100%
8Diebold, F. X. and R. S. Mariano (1995) Comparing predictive accuracy0.8434375%
9Gneiting, T. and R. Ranjan (2011) Comparing density forecasts using threshold-and quantile-weighted scoring rules0.81142100%
10Koenker, R. and G. Bassett (1978) Regression quantiles0.81142100%

Showing the top 10 of 31 scored citations.