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Autori principali: Wen, Qin, Hurvich, Clifford M.
Natura: Preprint
Pubblicazione: 2026
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Accesso online:https://arxiv.org/abs/2605.24156
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author Wen, Qin
Hurvich, Clifford M.
author_facet Wen, Qin
Hurvich, Clifford M.
contents We study the generalized dynamic factor model in a long-memory setting. Unlike most recent work, which assumes a finite-dimensional factor space and short memory, our framework allows the factor space to be infinite-dimensional and the common components to exhibit long memory. We employ the two-sided estimation method of Forni, Hallin, Lippi and Reichlin (2000, Review of Economics and Statistics) to recover the common component. The long memory structure of the common component poses a challenge, as it introduces unboundedness/discontinuity in the spectral density. We address this issue by leveraging two key facts: First, the estimated operator is a projection onto the leading eigenspace and thus the eigengap provides an intrinsic scaling that partially mitigates the blow-up. Second, we perform most of our estimation in $L^p$-norm, rather than pointwise. Experimental results are presented to provide evidence supporting the theory, as well as potential improvements to it.
format Preprint
id arxiv_https___arxiv_org_abs_2605_24156
institution arXiv
publishDate 2026
record_format arxiv
spellingShingle Long Memory in Intrinsically Dynamic Factor Models
Wen, Qin
Hurvich, Clifford M.
Statistics Theory
62P20
G.3
We study the generalized dynamic factor model in a long-memory setting. Unlike most recent work, which assumes a finite-dimensional factor space and short memory, our framework allows the factor space to be infinite-dimensional and the common components to exhibit long memory. We employ the two-sided estimation method of Forni, Hallin, Lippi and Reichlin (2000, Review of Economics and Statistics) to recover the common component. The long memory structure of the common component poses a challenge, as it introduces unboundedness/discontinuity in the spectral density. We address this issue by leveraging two key facts: First, the estimated operator is a projection onto the leading eigenspace and thus the eigengap provides an intrinsic scaling that partially mitigates the blow-up. Second, we perform most of our estimation in $L^p$-norm, rather than pointwise. Experimental results are presented to provide evidence supporting the theory, as well as potential improvements to it.
title Long Memory in Intrinsically Dynamic Factor Models
topic Statistics Theory
62P20
G.3
url https://arxiv.org/abs/2605.24156