Forecasting using Dlm in R - r

I have this dataset where I need to do a forecast for the next 6 Quarters using a Dynamic linear model (dlm) in R. The problem I am facing is that (dlmfc) keeps returning the same value for all the quarters. Also, including at least a trend and a seasonal value. Please, help me.
Here is the dataset.
[https://i.stack.imgur.com/DKhf3.png][1]
Here is my code.
DLM <- data1.ts
dlmMod <- dlmModPoly(order = 1, dV = 0.8, dW = 0.1) +
dlmModARMA(ar = 1, ma = 1, sigma2 = 1)
dlmFilt <- dlmFilter(DLM, mod = dlmMod)
dlmFc <- dlmForecast(dlmFilt, nAhead = 6)

Related

Point constraint in R piecewise regression

I am trying to fit a piecewise regression for this dataset. I know we do not have a linear relation between the dependent and independent variable but my real world application requires me to model the data as a lm segmented regression.
Here is my code with description of the steps
bond_data <- data.frame(
yield_change = c(-1.2,-0.9,-1.8,-1.4,-1.8,-2.1,-2.3,-2.1,-2.5,-2.2,-2.4,-2.5,-2.4,-2.4,
-3.0,-2.6,-5.1,-4.8,-4.9,-5.0,-5.0,-6.2,-6.1,-6.3,-5.0,-5.0),
maturity =c(10.2795,10.8603,11.7753,12.3562,12.5205,13.3589,13.8630,14.2822,14.3589,15.3589,
15.8630,16.778,17.3616,17.8658,18.3616,21.8685,22.5288,23.8685,24.3644,25.3671,
26.8712,27.8712,28.8712,29.8740,44.3781,49.3836))
The bond_data Dataframe contains these two vectors stated above.
#Defining lm model & segmented modelmodel <- lm(yield_change~maturity, data = bond_data)
segmented.model <- segmented(model,seg.Z=~maturity,psi = list(maturity = c(15,20,30)),fixed.psi = c(15,20,30),control = seg.control(it.max = 0, n.boot = 50))
xp <- c(min(bond_data$maturity), segmented.model$psi[,"Est."], max(bond_data$maturity))
new_data <- data.frame(xp)
colnames(new_data) <- "maturity"
o <- segmented.model
new_data$dummy1 <- pmax(new_data$maturity - o$psi[1,2], 0)
new_data$dummy2 <- pmax(new_data$maturity - o$psi[2,2], 0)
new_data$dummy3 <- pmax(new_data$maturity - o$psi[3,2], 0)
new_data$dummy4 <-I(new_data$maturity > o$psi[1,2]) * coef(o)[3]
new_data$dummy5 <-I(new_data$maturity > o$psi[2,2]) * coef(o)[4]
new_data$dummy6 <-I(new_data$maturity > o$psi[3,2]) * coef(o)[5]
names(new_data)[-1] <- names(model.frame(o))[-c(1,2)]
yp <- predict(segmented.model,new_data)
plot(bond_data$maturity,bond_data$yield_change, pch=16, col="blue",ylim = c(-8,0))
lines(xp,yp)
I get the following image
Plot of actual values in blue points and pred line
I am trying to get the first segment start at the point(maturity = 10, yield_change = 0)
One thing to note is that all my breakpoints have fixed x positions and no estimates are made so when I run segmented.model$psi my initial values are the same as my estimates (15,20 and 30) and all my st.err are zero.
How would I go about making my prediction line start at the point(maturity = 10, yield_change = 0)? I appreciate any help!
I have tried doing the following:
model <- lm(I(yield_change-0)~I(maturity-10), data = bond_data)
segmented.model <- segmented(model,seg.Z=~maturity,psi = list(maturity = c(15,20,30)),fixed.psi = c(15,20,30), control = seg.control(it.max = 0, n.boot = 50))
#But by running the previous line I get the error (object maturity not recognised).
#By running:
segmented.model <- segmented(model,seg.Z=~I(maturity-10),psi = list(I(maturity-10) = c(15,20,30)),fixed.psi = c(15,20,30), control = seg.control(it.max = 0, n.boot = 50))
I get this error:
Error: unexpected '=' in "segmented.model <- segmented(model,seg.Z=~I(maturity-10),psi = list(I(maturity-10) ="
I do not think I am using the correct method to solve my problem...

R: forecast::accuracy() Vs Metrics::accuracy() Functions Results Not the Same

I am testing for the RMSE of a forecast and observed that the two forecast::accuracy()[2] and Metrics::accuracy() are not the same. In fact, the latter is even 0
set.seed(289805)
ts1 <- arima.sim(n = 10, model = list(ar = 0.8, order = c(1, 0, 0)), sd = 1) # the series I want to forecast for
train_ts1 <- head(ts1, length(ts1) - 2) # the part of series I want to project int the future time
test_ts1 <- tail(ts1, length(ts1) - length(train_ts1)) # the part of series I want to compare my forecast with
set.seed(837530)
ts2 <- arima.sim(n = 10, model = list(ma = 0.8, order = c(0, 0, 1)), sd = 1) # the second series, part of which I want to train
train_ts2 <- head(ts2, length(ts2) - 2) # trainning part of second series
test_ts2 <- tail(ts2, length(ts2) - length(train_ts2)) # do not seem to need this part of the series
fcast <- forecast::forecast(train_ts1, model = forecast::auto.arima(train_ts2), h = 2)$mean # my
forecast using the best model from trainning set of second series
forecast::accuracy(fcast, test_ts1)[2] # RMSE for the forecast
# [1] 0.6412488
Metrics::accuracy(test_ts1, fcast)
# [1] 0
Please what am I doing wrong?

Alter fixed and random effects using Fixef and VarCorr in package simr with a ZIP glmmTMB

I am trying to alter the fixed and random effects of a zero-inflated Poisson model using R's glmmTMB function. I want to input the altered fixed effects into the powerSim function. Here is the data:
sample <- as.data.frame(cbind(1:50, (rep(1:10, each = 5))))
#randomize interventions by clinic
ru1 <- cbind(rbinom(10, 1, 0.5), 1:10)
ru2 <- cbind(rbinom(10, 1, 0.5), 1:10)
#merge randomization id with original sample
sample <- merge(sample, ru1, by = "V2") %>% merge(ru2)
#add days
sample <- as.data.frame(cbind(sample, scale(rep(-546:546, each = 50))))
#order by clinic and prescriber
sample <- sample[order(sample$V2, sample$V1.x),]
#simulate ZIP distribution for days supply
set.seed(789)
sample <- cbind(sample, ifelse(rbinom(54650, 1, p = 0.5) > 0, 0, rpois(54650, 5)))
#rename variables
sample <- rename(sample, pres = V1.x, clinic = V2, aj = V1.y, def = V1,
days = `scale(rep(-546:546, each = 50))`,
dayssply = `ifelse(rbinom(54650, 1, p = 0.5) > 0, 0, rpois(54650, 5))`)
#days truncated
sample$days_ <- ifelse(0 > sample$days, 0, sample$days)
#model
m1 <- glmmTMB(dayssply ~ aj*days_ + (1|clinic/pres), zi = ~ aj*days_,
data = sample, family = poisson)
After a lot of trial and error, I finally figured out how to specify the conditional fixed effect using the fixef function:
fixef(m1)$cond [["aj"]]
But when I try to change it to the desired fixed effect for the power analysis, I get the error that "cond is not the name of a fixed effect." Not sure if this is a syntax related issue, or if fixef doesn't work for zero-inflated models.
I would also like to alter the variances for the random effects using VarCorr.

multivariate state space model dlm okuns law

I'm trying to estimate an Okun's law equation with a dlm using the dlm package in R. I can estimate the non-time varying model using nls as follows:
const_coef <- nls(formula = dur~ b1*dur_lag1 + b2*(d2lgdp-b0) + b3*d2lrulc_lag2 ,
start = list(b0 =0.1, b1=0.1, b2=0.1, b3=0.1),
data = mod_data)
the dlm model I want to be able to estimate allows for b1 and b0 in the above to follow random walks. I can do this in Eviews by declaring the measurement equation and appending the states (below is some code provided by the authors of the original paper which I can replicate:
'==========================
' SPECIFY THE KALMAN FILTER
'==========================
'Priors on state variables
vector(2) mprior
mprior(1) = 4 'Prior on starting value for trend GDP growth (annual average GDP growth over 1950s)
mprior(2) = 0 'Prior on starting value for lagged dependent variable
sym(2) vprior
vprior(1,1) = 5 'Prior on variance of trend GDP growth (variance of annual GDP growth over 1950s)
vprior(2,2) = 1 'Prior on variance of lagged dependent variable
'Specify coefficient vector
coef(8) ckf
'Declare state space
sspace ss1
ss1.append dur = lag*dur(-1) + ckf(2)*(d2lgdp-trend)+ckf(3)*D2LRULC(-2)+[var=exp(ckf(4))] 'Measurement equation
ss1.append #state trend = 1*trend(-1) + [var = exp(ckf(5))] 'State equation for trend GDP growth (random walk)
ss1.append #state lag = 1*lag(-1) + [var = exp(ckf(6))] 'State equation for lagged dependent variable (random walk)
'Apply priors to state space
ss1.append #mprior mprior
ss1.append #vprior vprior
'Set parameter starting values
param ckf(2) -0.0495 ckf(3) 0.01942 ckf(4) -2.8913 ckf(5) -4.1757 ckf(6) -6.2466 'starting values for parameters
'=====================
' ESTIMATE THE MODEL
'=====================
'Estimate state space
smpl %estsd %ested 'Estimation sample
ss1.ml(m=500,showopts) 'Estimate Kalman filter by maximum likelihood
freeze(mytab) ss1.stats
I'm really not sure how to do this with the dlm package. I've tried the following:
buildSS <- function(v){
dV <- exp(v[1]) # Variance of the measurment equation (ckf4)
dW <- c(exp(v[2]), # variance of the lagged dep (ckf6)
0, # variance of the coef on d2lgdp ckf(2) set to 0
0, # variance of the coef on d2lrulc ckf(3) set to 0
exp(v[3]) # variance of the random walk intercept (ckf5)
)
beta.vec <- c(1,v[4],v[5],1) # Params ckf(2) ckf3(3)
okuns <- dlmModReg(mod_data.tvp[,-1], addInt = TRUE, dV =dV, dW = dW, m0 = beta.vec)
}
#'Set parameter starting values
ckf4Guess <- -2.8913
ckf2guess <- -0.0495
ckf3guess <- 0.01942
ckf5guess <- -4.1757
ckf6guess <- -6.2466
params <- c(ckf4Guess,
ckf5guess,
ckf6guess,
ckf2guess,
ckf3guess)
tvp_mod.mle <- dlmMLE(mod_data.tvp[,"dur"] , parm = params, build = buildSS)
tvp_mod <- buildSS(tvp_mod.mle$par)
tvp_filter <- dlmFilter(mod_data$dur,tvp_mod)
The above code runs, but the outputs are not correct. I am not specifying the the states properly. Does anyone have any experience in building dlms with mutlvirate regression in R?
I think I have gotten to a solution - I've managed to recreate the estimates in the paper which estimates this model using Eviews (also checked this using Eviews).
#--------------------------------------------------------------------------------------------------------------------------
# tvp model full model - dur = alpha*dur(-1)+ beta(dgdp-potential) + gamma*wages
#--------------------------------------------------------------------------------------------------------------------------
# Construct DLM
OkunsDLMfm <- dlm(
FF = matrix(c(1,1,1,1),ncol = 4, byrow = TRUE),
V = matrix(1),
GG = matrix(c(1,0,0,0,
0,1,0,0,
0,0,1,0,
0,0,0,1), ncol = 4, byrow = TRUE),
W = matrix(c(1,0,0,0,
0,1,0,0,
0,0,1,0,
0,0,0,1), ncol = 4, byrow = TRUE),
JFF = matrix(c(1,2,3,0),ncol = 4, byrow = TRUE),
X = cbind(mod_data$dur_lag1,mod_data$d2lgdp, mod_data$d2lrulc_lag2), # lagged dep var, dgdp, wages.
m0 = c(0,0,0,0),
C0 = matrix(c(1e+07,0,0,0,
0,1e+07,0,0,
0,0,1e+07,0,
0,0,0,1e+07), ncol = 4, byrow = TRUE)
)
buildOkunsFM <- function(p){
V(OkunsDLMfm) <- exp(p[2])
GG(OkunsDLMfm)[1,1] <- 1
GG(OkunsDLMfm)[2,2] <- 1
GG(OkunsDLMfm)[3,3] <- 1
GG(OkunsDLMfm)[4,4] <- 1
W(OkunsDLMfm)[1,1] <- exp(p[3])
W(OkunsDLMfm)[2,2] <- 0
W(OkunsDLMfm)[3,3] <- 0
W(OkunsDLMfm)[4,4] <- exp(p[4])
m0(OkunsDLMfm) <- c(0,0,0,p[1]*4)
C0(OkunsDLMfm)[1,1] <- 1
C0(OkunsDLMfm)[4,4] <- 5
return(OkunsDLMfm)
}
okuns.estfm <- dlmMLE(y = mod_data$dur, parm = c(-0.049,-1.4,-6,-5), build = buildOkunsFM)
OkunsDLM1fm <- buildOkunsFM(okuns.estfm$par)
The time varying level, the estimate of potential output, is derived by dividing the 4 element of the state vector by the second * by negative 1.
Not sure if this is best way to specify the DLM, but the results from the model are very close to what is reported (within 0.01) of the results from using Eviews. That being said, very open to any other specifications.

R: Holt-Winters with daily data (forecast package)

In the following example, I am trying to use Holt-Winters smoothing on daily data, but I run into a couple of issues:
# generate some dummy daily data
mData = cbind(seq.Date(from = as.Date('2011-12-01'),
to = as.Date('2013-11-30'), by = 'day'), rnorm(731))
# convert to a zoo object
zooData = as.zoo(mData[, 2, drop = FALSE],
order.by = as.Date(mData[, 1, drop = FALSE], format = '%Y-%m-%d'),
frequency = 7)
# attempt Holt-Winters smoothing
hw(x = zooData, h = 10, seasonal = 'additive', damped = FALSE,
initial = 'optimal', exponential = FALSE, fan = FALSE)
# no missing values in the data
sum(is.na(zooData))
This leads to the following error:
Error in ets(x, "AAA", alpha = alpha, beta = beta, gamma = gamma,
damped = damped, : You've got to be joking. I need more data! In
addition: Warning message: In ets(x, "AAA", alpha = alpha, beta =
beta, gamma = gamma, damped = damped, : Missing values encountered.
Using longest contiguous portion of time series
Emphasis mine.
Couple of questions:
1. Where are the missing values coming from?
2. I am assuming that the "need more data" arises from attempting to estimate 365 seasonal parameters?
Update 1:
Based on Gabor's suggestion, I have recreated a fractional index for the data where whole numbers are weeks.
I have a couple of questions.
1. Is this is an appropriate way of handling daily data when the periodicity is assumed to be weekly?
2. Is there is a more elegant way of handling the dates when working with daily data?
library(zoo)
library(forecast)
# generate some dummy daily data
mData = cbind(seq.Date(from = as.Date('2011-12-01'),
to = as.Date('2013-11-30'), by = 'day'), rnorm(731))
# conver to a zoo object with weekly frequency
zooDataWeekly = as.zoo(mData[, 2, drop = FALSE],
order.by = seq(from = 0, by = 1/7, length.out = 731))
# attempt Holt-Winters smoothing
hwData = hw(x = zooDataWeekly, h = 10, seasonal = 'additive', damped = FALSE,
initial = 'optimal', exponential = FALSE, fan = FALSE)
plot(zooDataWeekly, col = 'red')
lines(fitted(hwData))
hw requires a ts object not a zoo object. Use
zooDataWeekly <- ts(mData[,2], frequency=7)
Unless there is a good reason for specifying the model exactly, it is usually better to let R select the best model for you:
fit <- ets(zooDataWeekly)
fc <- forecast(fit)
plot(fc)

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