Bayesian Analysis of ARMA Processes: Complete Sampling Based Inference Under Full Likelihoods
Abstract
For a general stationary and. invertible ARMA (p,q) process, we show how to carry out a fully Bayesian analysis. Our approach is through the use of sampling based methods involving three novel aspects. First the constraints on the parameter space arising from the stationary and invertibility conditions are handled by a convenient reparametrization to all of Euclidean (p+q)-space. Second, required sampling is facilitated by the introduction of latent variables which, though increasing the dimensionality of the problem, greatly simplifies the evaluation of the likelihood. Third, the particular sampling based approach used is a Markov chain Monte Carlo method which is a hybrid of the Gibbs sampler and the Metropolis algorithm. We also briefly show how straightforwardly the sampling based approach accommodates missing observations, outlier detection, prediction and model determination. Finally we illustrate the approach with two examples.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jun 24, 1993
- Accession Number
- ADA269168
Entities
People
- A. E. Gelfand
- John Marriott
- N. Ravishanker
Organizations
- Stanford University