A New Model for Multivariate Markov Chains

نویسنده

  • João Nicolau
چکیده

We propose a new model for multivariate Markov chains of order one or higher based on the mixture transition distribution (MTD) model. We call it the MTD-Probit. The proposed model presents two attractive features: it is completely free of constraints, thereby facilitating the estimation procedure, and it is more precise at estimating the transition probabilities of a multivariate or higher-order Markov chain than the standard MTD model.

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تاریخ انتشار 2013