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Nonparametric estimation of large covariance matrices of longitudinal data

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Author Info
Wei Biao Wu
Abstract

Estimation of an unstructured covariance matrix is difficult because of its positive-definiteness constraint. This obstacle is removed by regressing each variable on its predecessors, so that estimation of a covariance matrix is shown to be equivalent to that of estimating a sequence of varying-coefficient and varying-order regression models. Our framework is similar to the use of increasing-order autoregressive models in approximating the covariance matrix or the spectrum of a stationary time series. As an illustration, we adopt Fan & Zhang's (2000) two-step estimation of functional linear models and propose nonparametric estimators of covariance matrices which are guaranteed to be positive definite. For parsimony a suitable order for the sequence of (auto)regression models is found using penalised likelihood criteria like AIC and BIC. Some asymptotic results for the local polynomial estimators of components of a covariance matrix are established. Two longitudinal datasets are analysed to illustrate the methodology. A simulation study reveals the advantage of the nonparametric covariance estimator over the sample covariance matrix for large covariance matrices. Copyright Biometrika Trust 2003, Oxford University Press.

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Publisher Info
Article provided by Oxford University Press for Biometrika Trust in its journal Biometrika.

Volume (Year): 90 (2003)
Issue (Month): 4 (December)
Pages: 831-844
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Handle: RePEc:oup:biomet:v:90:y:2003:i:4:p:831-844

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  1. Peter Bickel & Bo Li & Alexandre Tsybakov & Sara Geer & Bin Yu & Teófilo Valdés & Carlos Rivero & Jianqing Fan & Aad Vaart, 2006. "Regularization in statistics," TEST: An Official Journal of the Spanish Society of Statistics and Operations Research, Springer, vol. 15(2), pages 271-344, September. [Downloadable!] (restricted)
  2. Feng, Yuanhua & Yu, Keming, 2006. "Nonparametric estimation of time-varying covariance matrix in a slowly changing vector random walk model," MPRA Paper 1597, University Library of Munich, Germany. [Downloadable!]
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