Joint Quantile Shrinkage: A State-Space Approach toward Non-Crossing Bayesian Quantile Models

Fuente: arXiv
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Autori principali: Kohns, David, Szendrei, Tibor
Natura: Preprint
Pubblicazione: 2025
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author Kohns, David
Szendrei, Tibor
author_facet Kohns, David
Szendrei, Tibor
contents Crossing of fitted conditional quantiles is a prevalent problem for quantile regression models. We propose a new Bayesian modelling framework that penalises multiple quantile regression functions toward the desired non-crossing space. We achieve this by estimating multiple quantiles jointly with a prior on variation across quantiles, a fused shrinkage prior with quantile adaptivity. The posterior is derived from a decision-theoretic general Bayes perspective, whose form yields a natural state-space interpretation aligned with Time-Varying Parameter (TVP) models. Taken together our approach leads to a Quantile-Varying Parameter (QVP) model, for which we develop efficient sampling algorithms. We demonstrate that our proposed modelling framework provides superior parameter recovery and predictive performance compared to competing Bayesian and frequentist quantile regression estimators in simulated experiments and a real-data application to multivariate quantile estimation in macroeconomics.
format Preprint
id arxiv_https___arxiv_org_abs_2506_13257
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Joint Quantile Shrinkage: A State-Space Approach toward Non-Crossing Bayesian Quantile Models
Kohns, David
Szendrei, Tibor
Methodology
Econometrics
Statistics Theory
Crossing of fitted conditional quantiles is a prevalent problem for quantile regression models. We propose a new Bayesian modelling framework that penalises multiple quantile regression functions toward the desired non-crossing space. We achieve this by estimating multiple quantiles jointly with a prior on variation across quantiles, a fused shrinkage prior with quantile adaptivity. The posterior is derived from a decision-theoretic general Bayes perspective, whose form yields a natural state-space interpretation aligned with Time-Varying Parameter (TVP) models. Taken together our approach leads to a Quantile-Varying Parameter (QVP) model, for which we develop efficient sampling algorithms. We demonstrate that our proposed modelling framework provides superior parameter recovery and predictive performance compared to competing Bayesian and frequentist quantile regression estimators in simulated experiments and a real-data application to multivariate quantile estimation in macroeconomics.
title Joint Quantile Shrinkage: A State-Space Approach toward Non-Crossing Bayesian Quantile Models
topic Methodology
Econometrics
Statistics Theory
url https://arxiv.org/abs/2506.13257