Bayesian nonparametric mixtures of Archimedean copulas

Fuente: arXiv
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Main Authors: Pan, Ruyi, Nieto-Barajas, Luis E., Craiu, Radu V.
Format: Preprint
Published: 2024
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author Pan, Ruyi
Nieto-Barajas, Luis E.
Craiu, Radu V.
author_facet Pan, Ruyi
Nieto-Barajas, Luis E.
Craiu, Radu V.
contents Copula-based dependence modeling often relies on parametric formulations. This is mathematically convenient, but can be statistically inefficient when the parametric families are not suitable for the data and model in focus. A Bayesian nonparametric mixture of Archimedean copulas is introduced to increase the flexibility of copula-based dependence modeling. Specifically, the Poisson-Dirichlet process is used as a mixing distribution over the Archimedean copulas' parameter. Properties of the mixture model are studied for the main Archimedean families, and posterior distributions are sampled via their full conditional distributions. The performance of the model is illustrated via numerical experiments involving simulated and real data.
format Preprint
id arxiv_https___arxiv_org_abs_2412_09539
institution arXiv
publishDate 2024
record_format arxiv
spellingShingle Bayesian nonparametric mixtures of Archimedean copulas
Pan, Ruyi
Nieto-Barajas, Luis E.
Craiu, Radu V.
Methodology
Copula-based dependence modeling often relies on parametric formulations. This is mathematically convenient, but can be statistically inefficient when the parametric families are not suitable for the data and model in focus. A Bayesian nonparametric mixture of Archimedean copulas is introduced to increase the flexibility of copula-based dependence modeling. Specifically, the Poisson-Dirichlet process is used as a mixing distribution over the Archimedean copulas' parameter. Properties of the mixture model are studied for the main Archimedean families, and posterior distributions are sampled via their full conditional distributions. The performance of the model is illustrated via numerical experiments involving simulated and real data.
title Bayesian nonparametric mixtures of Archimedean copulas
topic Methodology
url https://arxiv.org/abs/2412.09539