Search results for " Stochastic Simulation"
showing 3 items of 3 documents
Forecasting Financial Crises and Contagion in Asia using Dynamic Factor Analysis
2009
Abstract In this paper we use principal components analysis to obtain vulnerability indicators able to predict financial turmoil. Probit modelling through principal components and also stochastic simulation of a Dynamic Factor model are used to produce the corresponding probability forecasts regarding the currency crisis events affecting a number of East Asian countries during the 1997–1998 period. The principal components model improves upon a number of competing models, in terms of out-of-sample forecasting performance.
Mapping of penetrometer resistance in relation to tractor traffic using multivariate geostatistics
2007
Abstract The traffic of agricultural machines can cause soil compaction and high variability of soil structure, both along normal lines and along those parallel to the field plane. The aim of this work was to investigate the potential of an electronic penetrometer, a GPS, a GIS and geostatistical techniques for mapping soil compaction. In July 2003 soil cone penetrometer resistance was measured using a semi-automatic electronic penetrometer in a sandy-silt soil (Vertic Xerochrept) of inland Sicily where a three-year rotation wheat ( Triticum durum Desf.)–wheat–tomato ( Solanum lycopersicum L.) was practiced. The measurements were carried out along three parallel 3-m long transects, from the…
Forecasting industry sector default rates through dynamic factor models
2008
In this paper we use a reduced-form model for the analysis of portfolio credit risk. For this purpose, we fit a dynamic factor model to a large data set of default rate proxies and macro-variables for Italy. Multiple step ahead density and probability forecasts are obtained by employing both the direct and indirect methods of prediction together with stochastic simulation of the dynamic factor model. We first find that the direct method is the best performer regarding the out-of-sample projection of financial distressful events. In a second stage of the analysis, we find that reducedform portfolio credit risk measures obtained through the dynamic factor model are lower than those correspond…