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Sparse Bayesian State-Space and Time-Varying Parameter Models

2022-07-25 · Sylvia Frühwirth-Schnatter, Peter Knaus

In this chapter, we review variance selection for time-varying parameter (TVP) models for univariate and multivariate time series within a Bayesian framework. We show how both continuous as well as discrete spike-and-slab shrinkage priors can be transferred from variable selection for regression models to variance selection for TVP models by using a non-centered parametrization. We discuss efficient MCMC estimation and provide an application to US inflation modeling.

📄 PDF Abstract BibTeX arXiv:2207.12147

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regressionTime SeriesTime Series AnalysisVariable Selection

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