On Regime Switching Models

Regime switching models have been widely studied for their ability to capture the dynamic behavior of time series data and are widely used in economic and financial data analysis. This paper reviews various regime switching models with various regime switching mechanisms, including threshold models,...

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Main Authors: Zhenni Tan, Yuehua Wu
Format: Article
Language:English
Published: MDPI AG 2025-03-01
Series:Mathematics
Subjects:
Online Access:https://www.mdpi.com/2227-7390/13/7/1128
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author Zhenni Tan
Yuehua Wu
author_facet Zhenni Tan
Yuehua Wu
author_sort Zhenni Tan
collection DOAJ
description Regime switching models have been widely studied for their ability to capture the dynamic behavior of time series data and are widely used in economic and financial data analysis. This paper reviews various regime switching models with various regime switching mechanisms, including threshold models, hidden Markov regime switching models, hidden semi-Markov regime switching models, and smooth transition models. The focus is on regime switching models for time series, studying their underlying frameworks, popular variants, and commonly used estimation methods. In addition, six different regime switching models are compared using two real-world datasets.
format Article
id doaj-art-b291e5e8feeb42cf945c00fc2a5ae96a
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issn 2227-7390
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publishDate 2025-03-01
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spelling doaj-art-b291e5e8feeb42cf945c00fc2a5ae96a2025-08-20T02:09:17ZengMDPI AGMathematics2227-73902025-03-01137112810.3390/math13071128On Regime Switching ModelsZhenni Tan0Yuehua Wu1Department of Mathematics and Statistics, York University, 4700 Keele St., Toronto, ON M3J 1P3, CanadaDepartment of Mathematics and Statistics, York University, 4700 Keele St., Toronto, ON M3J 1P3, CanadaRegime switching models have been widely studied for their ability to capture the dynamic behavior of time series data and are widely used in economic and financial data analysis. This paper reviews various regime switching models with various regime switching mechanisms, including threshold models, hidden Markov regime switching models, hidden semi-Markov regime switching models, and smooth transition models. The focus is on regime switching models for time series, studying their underlying frameworks, popular variants, and commonly used estimation methods. In addition, six different regime switching models are compared using two real-world datasets.https://www.mdpi.com/2227-7390/13/7/1128regime switchingthresholdhidden semi-Markovsmooth transitionsojourn distribution
spellingShingle Zhenni Tan
Yuehua Wu
On Regime Switching Models
Mathematics
regime switching
threshold
hidden semi-Markov
smooth transition
sojourn distribution
title On Regime Switching Models
title_full On Regime Switching Models
title_fullStr On Regime Switching Models
title_full_unstemmed On Regime Switching Models
title_short On Regime Switching Models
title_sort on regime switching models
topic regime switching
threshold
hidden semi-Markov
smooth transition
sojourn distribution
url https://www.mdpi.com/2227-7390/13/7/1128
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