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Re: st: -arima- vs. -sspace-


From   Jorge Eduardo Pérez Pérez <[email protected]>
To   "[email protected]" <[email protected]>
Subject   Re: st: -arima- vs. -sspace-
Date   Mon, 26 Mar 2012 11:00:36 -0400

Dear Mr. Gates.

Thank you for your suggestions. I will try them out.

______________________
Jorge Eduardo Pérez Pérez



On Fri, Mar 23, 2012 at 5:39 PM, Richard Gates <[email protected]> wrote:
> Jorge Eduardo Pérez Pérez wrote:
>  >
>  > I have been fitting arima models using the state space representation
>  > and the -sspace- command instead of using -arima-. I am doing this
>  > because I need the filtered state estimates for other purposes. I have
>  > found that in some cases, -arima- achieves convergence while -sspace-
>  > does not, even using the same optimization technique. See an example
>  > below for an ARIMA(2,0,0). I have a couple of questions.
>  >
>  > 1. Why does this happen? I know that -arima- has its own
>  > implementation of the Kalman Filter coded in the Stata matrix
>  > language, while sspace is coded in mata and uses the mata optimization
>  > routines. Can anyone point out the differences between the two
>  > implementations? I would expect that a model that converges using
>  > -arima-, would also converge using the -sspace- routines that are much
>  > more up to date.
>  > 2. How do I get -sspace- to achieve the same results as -arima-?
>
> Try scaling your data.  -sspace- estimates the variance and -arima- the
> standard deviation.
>
> When you have a nonconvergent problem, use the -iterate()- option
> to terminate the optimization at a point where it looks like it is
> having trouble and take a look at the estimates.
>
>
>
> . do arima2
>
> . clear
>
> . * Input database
> . input dlym
>
>           dlym
>   1. .0076563
>   2. .0095813
>   3. .007427
>  ...
> (omitted)
>
>  44. -.0007679
>  45. .000582
>  46. .0012176
>  47. .0005591
>  48. -.0000923
>  49. .0030711
>  50. .0041749
>  51. .0029995
>  52. .0018442
>  53. end
>
> . * Declare time series
> . gen t=_n
>
> . tsset t
>         time variable:  t, 1 to 52
>                 delta:  1 unit
>
> . replace dlym = 1000*dlym
> (52 real changes made)
>
> . * Estimate arima
> . arima dlym, arima(2,0,0) nocons
>
> (setting optimization to BHHH)
> Iteration 0:   log likelihood = -132.81204
> Iteration 1:   log likelihood = -132.79176
> Iteration 2:   log likelihood = -132.78632
> Iteration 3:   log likelihood =  -132.7844
> Iteration 4:   log likelihood = -132.78369
> (switching optimization to BFGS)
> Iteration 5:   log likelihood = -132.78337
> Iteration 6:   log likelihood = -132.78305
> Iteration 7:   log likelihood = -132.78304
>
> ARIMA regression
>
> Sample:  1 - 52                                 Number of obs      =        52
>                                                 Wald chi2(2)       =    193.17
> Log likelihood =  -132.783                      Prob > chi2        =    0.0000
>
> ------------------------------------------------------------------------------
>              |                 OPG
>         dlym |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
> -------------+----------------------------------------------------------------
> ARMA         |
>           ar |
>          L1. |   1.098012   .1706826     6.43   0.000     .7634798    1.432543
>          L2. |  -.2922192   .1466112    -1.99   0.046    -.5795718   -.0048666
> -------------+----------------------------------------------------------------
>       /sigma |   3.066515   .1590157    19.28   0.000      2.75485     3.37818
> ------------------------------------------------------------------------------
> Note: The test of the variance against zero is one sided, and the two-sided
>     confidence interval is truncated at zero.
>
> .
> . *Estimate via sspace
> . constraint 1 [dy]e.dy=1
>
> . constraint 2 [dlym]dy=1
>
> . constraint 3 [et]e.dy=1
>
> . constraint 4 [ldy]l.dy=1
>
> .
> . sspace (dy l.dy l.ldy e.dy, state noconstant)  ///
>  >         (ldy l.dy, state noconstant )   ///
>  >         (et e.dy, state noconstant)     ///
>  >         (dlym dy, noconstant),          ///
>  >         covstate(diagonal)  constraints(1/4) tech(bhhh 4 nr) ///
>  >         iterate(15)
> searching for initial values ...........
> (setting technique to bhhh)
> Iteration 0:   log likelihood = -133.26724
> Iteration 1:   log likelihood = -133.08202
> Iteration 2:   log likelihood = -132.96335
> Iteration 3:   log likelihood = -132.89188
> (switching technique to nr)
> Iteration 4:   log likelihood = -132.84706
> Iteration 5:   log likelihood = -132.78316
> Iteration 6:   log likelihood = -132.78304
> Iteration 7:   log likelihood = -132.78304
> Refining estimates:
> Iteration 0:   log likelihood = -132.78304
> Iteration 1:   log likelihood = -132.78304
>
> State-space model
>
> Sample: 1 - 52                                    Number of obs   =         52
>                                                   Wald chi2(2)    =     163.02
> Log likelihood = -132.78304                       Prob > chi2     =     0.0000
>  ( 1)  [dy]e.dy = 1
>  ( 2)  [dlym]dy = 1
>  ( 3)  [et]e.dy = 1
>  ( 4)  [ldy]L.dy = 1
> ------------------------------------------------------------------------------
>              |                 OIM
>         dlym |      Coef.   Std. Err.      z    P>|z|     [95% Conf. Interval]
> -------------+----------------------------------------------------------------
> dy           |
>           dy |
>          L1. |   1.098088   .1304214     8.42   0.000     .8424671     1.35371
>              |
>          ldy |
>          L1. |  -.2922904   .1330764    -2.20   0.028    -.5531154   -.0314655
>         e.dy |          1  (constrained)
> -------------+----------------------------------------------------------------
> ldy          |
>           dy |
>          L1. |          1  (constrained)
> -------------+----------------------------------------------------------------
> et           |
>         e.dy |          1  (constrained)
> -------------+----------------------------------------------------------------
> dlym         |
>           dy |          1  (constrained)
> -------------+----------------------------------------------------------------
> Variance     |
>   dy         |   9.403747   1.845373     5.10   0.000     5.786882    13.02061
> ------------------------------------------------------------------------------
> Note: Tests of variances against zero are one sided, and the two-sided confidence
>     intervals are truncated at zero.
>
> I hope this is what you need.
>
> -Rich
> [email protected]
> *
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>
>


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