Dynamic Factor Models - Princeton University
May 07, 2010 · t –1 ′,…, f. t – p ′)′ denote an . r. 0, λ. 1,…, λ. p), where λ. i. is the . N. ×. q. matrix of coefficients on the . i. th. lag in λ(L). Similarly, let Φ(L) be the matrix consisting of 1’s, 0’s, and the elements of Ψ(L) such that the vector autoregression in (2) is rewritten in terms of . Ft. With this notation the DFM ...
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