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A Distributed Lag Approach to the Generalised Dynamic Factor Model (GDFM)

Philipp Gersing

arXiv 28 Oct 2024 · Econometrics

arXiv:2410.20885 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We provide estimation and inference for the Generalised Dynamic Factor Model (GDFM) under the assumption that the dynamic common component can be expressed in terms of a finite number of lags of contemporaneously pervasive factors. The proposed estimator is simply an OLS regression of the observed variables on factors extracted via static principal components and therefore avoids frequency domain techniques entirely.

Citation extraction

48
references
110
in-text mentions
48
distinct cited
3
self-citations
11,448
main-text words

appendix boundary found by appendix_command · 40% of the source is main text. Read the extracted text to check this.

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
1Gersing, Philipp and Barigozzi, Matteo and Rust, Christoph and Deist… (2023) Weak Factors are Everywhere self1.00073100%
2Chamberlain, Gary and Rothschild, M (1983) Arbitrage, Factor Structure, and Mean-Variance Analysis on Large Asset Markets1.00053100%
3Forni, Mario and Lippi, Marco (2001) The generalized dynamic factor model: representation theory0.87462100%
4Bai, Jushan and Ng, Serena (2006) Confidence intervals for diffusion index forecasts and inference for factor-augmented regressions0.87452100%
5Gersing, Philipp (2026) On the Existence of One-Sided Representations for the Generalised Dynamic Factor Model self0.81142100%
6Barigozzi, Matteo (2022) Principal Component Analysis for High-Dimensional Approximate Factor Models in Time Series: Assumptions, Asymptotic Theory, and…0.7547343%
7Deistler, Manfred and Scherrer, Wolfgang (2022) Time Series Models0.7374350%
8Gersing, Philipp (2023) Reconciling the Theory of Factor Sequences self0.73732100%
9Onatski, Alexei (2012) Asymptotics of the principal components estimator of large factor models with weakly influential factors0.73732100%
10Bai, Jushan and Ng, Serena (2002) Determining the number of factors in approximate factor models0.64422100%

Showing the top 10 of 48 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
1The Canonical Decomposition of Factor Models: Weak Factors are Everywhere0.73732
2Principal Component Analysis .3cm for High-Dimensional Approximate Factor Models in Time Series: Assumptions, Asymptotic Theory, and Identification0.40511