Copula-Type Estimators for Flexible Multivariate Density Modeling Using Mixtures

Minh-Ngoc Tran, Paulo Giordani, Xiuyan Mun, Robert Kohn, Michael K. Pitt

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)

Abstract

Copulas are popular as models for multivariate dependence because they allow the marginal densities and the joint dependence to be modeled separately. However, they usually require that the transformation from uniform marginals to the marginals of the joint dependence structure is known. This can only be done for a restricted set of copulas, for example, a normal copula. Our article introduces copula-type estimators for flexible multivariate density estimation which also allow the marginal densities to be modeled separately from the joint dependence, as in copula modeling, but overcomes the lack of flexibility of most popular copula estimators. An iterative scheme is proposed for estimating copula-type estimators and its usefulness is demonstrated through simulation and real examples. The joint dependence is modeled by mixture of normals and mixture of normal factor analyzer models, and mixture of t and mixture of t-factor analyzer models. We develop efficient variational Bayes algorithms for fitting these in which model selection is performed automatically. Based on these mixture models, we construct four classes of copula-type densities which are far more flexible than current popular copula densities, and outperform them in a simulated dataset and several real datasets. Supplementary material for this article is available online.
Original languageEnglish
Pages (from-to) 1163-1178
Number of pages15
JournalJOURNAL OF COMPUTATIONAL AND GRAPHICAL STATISTICS
Volume23
Issue number4
DOIs
Publication statusPublished - 25 Sept 2013

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