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A New Approach to Drawing States in State Space Models

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Author Info
William J. McCausland () (Département de sciences économiques, Université de Montréal)
Shirley Miller () (Département de sciences économiques, Université de Montréal)
Denis Pelletier () (Department of Economics, North Carolina State University)

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Abstract

We introduce a new method for drawing state variables in Gaussian state space models from their conditional distribution given parameters and observations. Unlike standard methods, our method does not involve Kalman filtering. We show that for some important cases, our method is computationally more efficient than standard methods in the literature. We consider two applications of our method.

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File URL: ftp://ftp.ncsu.edu/pub/ncsu/economics/RePEc/pdf/MMP.pdf
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Publisher Info
Paper provided by North Carolina State University, Department of Economics in its series Working Paper Series with number 014.

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Length: 27 pages
Date of creation: Aug 2007
Date of revision: Aug 2007
Handle: RePEc:ncs:wpaper:014

Note: First draft 2007-08
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Related research
Keywords: State space models; Stochastic volatility; Count data;

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Find related papers by JEL classification:
C11 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Bayesian Analysis
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods
C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions
C63 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computational Techniques

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  1. Kim, Sangjoon & Shephard, Neil & Chib, Siddhartha, 1998. "Stochastic Volatility: Likelihood Inference and Comparison with ARCH Models," Review of Economic Studies, Blackwell Publishing, vol. 65(3), pages 361-93, July. [Downloadable!] (restricted)
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This page was last updated on 2009-11-17.


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