Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: Semiparametric Functional Factor Models with Bayesian Rank Selection   Functional data are frequently accompanied by parametric templates that
describe the typical shapes of the functions. Although the templates
incorporate critical domain knowledge, parametric functional data models can
incur significant bias, which undermines the usefulness and interpretability of
these models. To correct for model misspecification, we augment the parametric
templates with an infinite-dimensional nonparametric functional basis.
Crucially, the nonparametric factors are regularized with an ordered
spike-and-slab prior, which implicitly provides consistent rank selection and
satisfies several appealing theoretical properties. This prior is accompanied
by a parameter-expansion scheme customized to boost MCMC efficiency, and is
broadly applicable for Bayesian factor models. The nonparametric basis
functions are learned from the data, yet constrained to be orthogonal to the
parametric template in order to preserve distinctness between the parametric
and nonparametric terms. The versatility of the proposed approach is
illustrated through applications to synthetic data, human motor control data,
and dynamic yield curve data. Relative to parametric alternatives, the proposed
semiparametric functional factor model eliminates bias, reduces excessive
posterior and predictive uncertainty, and provides reliable inference on the
effective number of nonparametric terms--all with minimal additional
computational costs.

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The categories of this paper are: chem-ph
33
The categories of this paper are: plasm-ph
4
The categories of this paper are: cond-mat
25
The categories of this paper are: patt-sol
37
The categories of this paper are: supr-con
1
The categories of this paper are: cs
36
The categories of this paper are: cmp-lg
17
The categories of this paper are: q-fin
32
The categories of this paper are: atom-ph
2
The categories of this paper are: math
27
The categories of this paper are: comp-gas
35
The categories of this paper are: mtrl-th
0
The categories of this paper are: hep-ph
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The categories of this paper are: dg-ga
20
The categories of this paper are: acc-phys
9
The categories of this paper are: nlin