EconBase
← All papers

Unified Mixture Sampler for State-Space Models: Application to Stochastic Conditional Duration Models

Daichi Hiraki, Yasuhiro Omori

arXiv 6 Apr 2026 · Statistics — Methodology

arXiv:2604.04517 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a unified mixture sampler (UMS) that provides a universal estimation framework for nonlinear state-space models with "exp-exp" likelihood kernels. Unlike existing methods that require deriving new mixture approximations for each specific distribution, our approach dynamically adapts the standard ten-component mixture from Omori et al. (2007) through a deterministic re-centering and rescaling algorithm. Applying this to the stochastic conditional duration (SCD) model, we demonstrate that the proposed sampler can efficiently handle unknown shape parameters - such as those in Weibull or Gamma distributions - by updating mixture components near-instantaneously during MCMC iterations. The UMS not only simplifies implementation but also ensures exact inference via a lightweight Metropolis-Hastings step. Numerical examples show that our method substantially outperforms the conventional slice sampling approach, significantly reducing autocorrelation in MCMC samples while maintaining high computational efficiency. This unified framework encompasses a wide range of applications, including logit, Poisson, and various SCD model specifications, providing a highly efficient alternative to model-specific samplers.

Citation extraction

13
references
24
in-text mentions
13
distinct cited
3
self-citations
4,278
main-text words

appendix boundary found by none_found · 100% 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
1de Jong, Piet and Shephard, Neil (1995) The simulation smoother for time series models0.84333100%
2Durbin, James and Koopman, Siem Jan (2002) A simple and efficient simulation smoother for state space time series analysis0.84333100%
3Omori, Yasuhiro and Chib, Siddhartha and Shephard, Neil and Nakajima… (2007) Stochastic volatility with leverage: Fast and efficient likelihood inference self0.73732100%
4Bauwens, Luc and Veredas, David (2004) The stochastic conditional duration model: a latent variable model for the analysis of financial durations0.64422100%
5Men, Zhongxian and Kolkiewicz, Adam W and Wirjanto, Tony S (2015) Bayesian analysis of asymmetric stochastic conditional duration model0.64422100%
6Sylvia Frühwirth-Schnatter and Rudolf Frühwirth (2007) Auxiliary mixture sampling with applications to logistic models0.58531100%
7Strickland, Chris M and Forbes, Catherine S and Martin, Gael M (2006) Bayesian analysis of the stochastic conditional duration model0.51121100%
8Chib, Siddhartha and Nardari, Federico and Shephard, Neil (2002) Markov chain Monte Carlo methods for stochastic volatility models0.40511100%
9Frühwirth-Schnatter, Sylvia and Frühwirth, Rudolf and Held, Leonhard… (2009) Improved auxiliary mixture sampling for hierarchical models of non-Gaussian data0.40511100%
10Kim, Sangjoon and Shephard, Neil and Chib, Siddhartha (1998) Stochastic volatility: likelihood inference and comparison with ARCH models0.40511100%

Showing the top 10 of 13 scored citations.