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Autores principales: Arias, Jonas E., Rubio-Ramírez, Juan F., Rudolf, Daniel, Shin, Minchul
Formato: Preprint
Publicado: 2025
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Acceso en línea:https://arxiv.org/abs/2505.23542
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author Arias, Jonas E.
Rubio-Ramírez, Juan F.
Rudolf, Daniel
Shin, Minchul
author_facet Arias, Jonas E.
Rubio-Ramírez, Juan F.
Rudolf, Daniel
Shin, Minchul
contents We develop a new algorithm for inference in structural vector autoregressions (SVARs) identified with sign restrictions that can accommodate big data and modern identification schemes. The key innovation of our approach is to move beyond the traditional accept-reject framework commonly used in sign-identified SVARs. We show that an elliptical slice within Gibbs sampler can deliver dramatic gains in computational speed and render previously infeasible applications tractable. We also prove that the algorithm is well-defined, in the sense that its stationary distribution coincides with the posterior distribution of interest. To illustrate the approach in the context of sign-identified SVARs, we use a tractable example. We further assess the performance of our algorithm through two applications: a well-known small-SVAR model of the oil market featuring a tight identified set, and a large SVAR model with more than ten shocks and 100 sign restrictions.
format Preprint
id arxiv_https___arxiv_org_abs_2505_23542
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Large SVARs
Arias, Jonas E.
Rubio-Ramírez, Juan F.
Rudolf, Daniel
Shin, Minchul
Econometrics
Machine Learning
We develop a new algorithm for inference in structural vector autoregressions (SVARs) identified with sign restrictions that can accommodate big data and modern identification schemes. The key innovation of our approach is to move beyond the traditional accept-reject framework commonly used in sign-identified SVARs. We show that an elliptical slice within Gibbs sampler can deliver dramatic gains in computational speed and render previously infeasible applications tractable. We also prove that the algorithm is well-defined, in the sense that its stationary distribution coincides with the posterior distribution of interest. To illustrate the approach in the context of sign-identified SVARs, we use a tractable example. We further assess the performance of our algorithm through two applications: a well-known small-SVAR model of the oil market featuring a tight identified set, and a large SVAR model with more than ten shocks and 100 sign restrictions.
title Large SVARs
topic Econometrics
Machine Learning
url https://arxiv.org/abs/2505.23542