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Dynamic Matrix Factor Models for High Dimensional Time Series

Ruofan Yu, Rong Chen, Han Xiao, Yuefeng Han

arXiv 8 Jul 2024 · Statistics — Methodology · 2 citations (OpenAlex)

arXiv:2407.05624 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Matrix time series, which consist of matrix-valued data observed over time, are prevalent in various fields such as economics, finance, and engineering. Such matrix time series data are often observed in high dimensions. Matrix factor models are employed to reduce the dimensionality of such data, but they lack the capability to make predictions without specified dynamics in the latent factor process. To address this issue, we propose a two-component dynamic matrix factor model that extends the standard matrix factor model by incorporating a matrix autoregressive structure for the low-dimensional latent factor process. This two-component model injects prediction capability to the matrix factor model and provides deeper insights into the dynamics of high-dimensional matrix time series. We present the estimation procedures of the model and their theoretical properties, as well as empirical analysis of the estimation procedures via simulations, and a case study of New York city taxi data, demonstrating the performance and usefulness of the model.

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36
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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
1Chen, R., Xiao, H., and Yang, D (2021) Autoregressive models for matrix-valued time series self1.000125100%
2Chen, R., Yang, D., and Zhang, C.-H (2022) Factor models for high-dimensional tensor time series self1.00096100%
3Wang, D., Liu, X., and Chen, R (2019) Factor models for matrix-valued high-dimensional time series self1.00083100%
4Xiao, H., Han, Y., Chen, R., and Liu, C (2023) Reduced rank autoregressive models for matrix time series self1.00054100%
5Han, Y., Chen, R., Yang, D., and Zhang, C.-H (2020) Tensor factor model estimation by iterative projection self0.90912575%
6Gourieroux, C. and Jasiak, J (2001) Dynamic factor models0.64422100%
7Bai, J (2003) Inferential theory for factor models of large dimensions0.64422100%
8Chen, E. Y. and Fan, J (2023) Statistical inference for high-dimensional matrix-variate factor models0.64422100%
9Fan, J., Liao, Y., and Mincheva, M (2013) Large covariance estimation by thresholding principal orthogonal complements0.64422100%
10Barigozzi, M. and Hallin, M (2016) Generalized dynamic factor models and volatilities: recovering the market volatility shocks0.64422100%

Showing the top 10 of 37 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
1Estimation of large approximate dynamic matrix factor models based on the EM algorithm and Kalman filtering0.92843
2Bayesian Dynamic Factor Models for High-Dimensional Matrix-Valued Time Series0.40511
3A Hybrid Framework Combining Autoregression and Common Factors for Matrix Time Series0.40511
4Covariate-Adjusted Deep Causal Learning for Heterogeneous Panel Data Models0.40511
5Diffusion Index Forecasting with Tensor Data0.40511
6Threshold Tensor Factor Model in CP Form0.40511
7Modewise Additive Factor Model for Matrix Time Series0.40511
8The Cointegrated Matrix Autoregressive Model0.40511