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Reduced-Rank Matrix Autoregressive Models: A Medium $N$ Approach

Alain Hecq, Ivan Ricardo, Ines Wilms

arXiv 10 Jul 2024 · Econometrics · 2 citations (OpenAlex)

arXiv:2407.07973 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Reduced-rank regressions are powerful tools used to identify co-movements within economic time series. However, this task becomes challenging when we observe matrix-valued time series, where each dimension may have a different co-movement structure. We propose reduced-rank regressions with a tensor structure for the coefficient matrix to provide new insights into co-movements within and between the dimensions of matrix-valued time series. Moreover, we relate the co-movement structures to two commonly used reduced-rank models, namely the serial correlation common feature and the index model. Two empirical applications involving U.S.\ states and economic indicators for the Eurozone and North American countries illustrate how our new tools identify co-movements.

Citation extraction

52
references
89
in-text mentions
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distinct cited
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self-citations
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main-text words

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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
1Wang, D.; Zheng, Y. and Li, G (2024) High-dimensional low-rank tensor autoregressive time series modeling1.000103100%
2Wang, D.; Zheng, Y.; Lian, H. and Li, G (2022) b), High-dimensional vector autoregressive time series modeling via tensor decomposition1.00053100%
3Cubadda, G. and Hecq, A (2022) a), Dimension reduction for high-dimensional vector autoregressive models self0.87452100%
4Lam, C. and Yao, Q (2012) Factor modeling for high-dimensional time series: Inference for the number of factors0.81142100%
5Xiao, H.; Han, Y.; Chen, R. and Liu, C (2022) Reduced rank autoregressive models for matrix time series0.81142100%
6Carriero, A.; Kapetanios, G. and Marcellino, M (2016) Structural analysis with multivariate autoregressive index models0.73732100%
7Chen, R.; Xiao, H. and Yang, D (2021) Autoregressive models for matrix-valued time series0.73732100%
8Engle, R. F. and Kozicki, S (1993) Testing for common features0.73732100%
9Billio, M.; Casarin, R.; Iacopini, M. and Kaufmann, S (2023) Bayesian dynamic tensor regression0.64422100%
10Velu, R. P.; Reinsel, G. C. and Wichern, D. W (1986) Reduced rank models for multiple time series0.64422100%

Showing the top 10 of 52 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
1Detecting Cointegrating Relations in Non-stationary Matrix-Valued Time Series0.40511
2Decomposing Co-Movements in Matrix-Valued Time Series: A Pseudo-Structural Reduced-Rank Approach0.40511