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Detalles Bibliográficos
Autores principales: Barigozzi, Matteo, Cho, Haeran, Maeng, Hyeyoung
Formato: Preprint
Publicado: 2024
Materias:
Acceso en línea:https://arxiv.org/abs/2407.09390
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  • We study the problem of factor modelling vector- and tensor-valued time series in the presence of heavy tails in the data, which produce extreme observations with non-negligible probability. We propose to combine a two-step procedure for tensor decomposition with data truncation, which is easy to implement and does not require an iterative search for a numerical solution. Departing away from the light-tail assumptions often adopted in the time series factor modelling literature, we derive the consistency and asymptotic normality of the proposed estimators while assuming the existence of the $(2 + 2ε)$-th moment only for some $ε\in (0, 1)$. Our rates explicitly depend on $\eps$ characterising the effect of heavy tails, and on the chosen level of truncation. We also propose a consistent criterion for determining the number of factors. Simulation studies and applications to two macroeconomic datasets demonstrate the good performance of the proposed estimators.