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Review: Spectral distribution function, spectral density... Introduction to Time Series Analysis.[r]

(1)

Introduction to Time Series Analysis Lecture 17.

1 Review: Spectral distribution function, spectral density Rational spectra Poles and zeros

3 Examples

(2)

Review: Spectral density and spectral distribution function

If a time series {Xt} has autocovariance γ satisfying

P∞

h=−∞ |γ(h)| < ∞, then we define its spectral density as

f(ν) =

X

h=−∞

γ(h)e−2πiνh

for −∞ < ν < ∞ We have

γ(h) =

Z 1/2

−1/2

e2πiνhf(ν)dν =

Z 1/2

−1/2

e2πiνh dF(ν),

(3)

Review: Spectral density of a linear process

If Xt is a linear process, it can be written Xt = P∞

i=0 ψiWt−i = ψ(B)Wt

Then

f(ν) = σw2 ψ e

−2πiν

(4)

Spectral density of a linear process

For an ARMA(p,q), ψ(B) = θ(B)/φ(B), so

f(ν) = σw2 θ(e

−2πiν

)θ(e2πiν)

φ(e−2πiν)φ (e2πiν)

= σw2

θ(e−2πiν)

φ (e−2πiν)

2

(5)

Rational spectra

Consider the factorization of θ and φ as

θ(z) = θq(z − z1)(z − z2)· · ·(z − zq)

φ(z) = φp(z − p1)(z − p2)· · ·(z − pp),

where z1, , zq and p1, , pp are called the zeros and poles.

f(ν) = σw2

θq Qq

j=1(e

−2πiν

− zj)

φp Qpj=1(e−2πiν − pj)

= σw2 θ q Qq j=1 e

−2πiν

− zj

φ2 p Qp

j=1 |e

−2πiν − p

j|2

(6)

Rational spectra

f(ν) = σw2 θ

q

Qq

j=1 e

−2πiν

− zj φ2

p

Qp

j=1 |e

−2πiν − p

j|2

As ν varies from to 1/2, e−2πiν moves clockwise around the unit circle from to e−πi = −1

(7)

Example: ARMA

Recall AR(1): φ(z) = − φ1z The pole is at 1/φ1 If φ1 > 0, the pole is

to the right of 1, so the spectral density decreases as ν moves away from If φ1 < 0, the pole is to the left of −1, so the spectral density is at its

maximum when ν = 0.5

Recall MA(1): θ(z) = + θ1z The zero is at −1/θ1 If θ1 > 0, the zero is to the left of −1, so the spectral density decreases as ν moves towards −1 If θ1 < 0, the zero is to the right of 1, so the spectral density is at its

(8)

Example: AR(2)

Consider Xt = φ1Xt−1 + φ2Xt−2 + Wt Example 4.6 in the text considers

this model with φ1 = 1, φ2 = −0.9, and σw2 = In this case, the poles are

at p1, p2 ≈ 0.5555 ± i0.8958 ≈ 1.054e±i1.01567 ≈ 1.054e±2πi0.16165

Thus, we have

f(ν) = σ

2

w

φ22|e−2πiν − p

1|2|e−2πiν − p2|2 ,

(9)

Example: AR(2)

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

20 40 60 80 100 120 140

ν

f(

ν

)

Spectral density of AR(2): X

(10)

Example: Seasonal ARMA

Consider Xt = Φ1Xt−12 + Wt

ψ(B) =

1 − Φ1B12 ,

f(ν) = σw2

(1 − Φ1e−2πi12ν)(1 − Φ

1e2πi12ν)

= σw2

1 − 2Φ1 cos(24πν) + Φ21

(11)

Example: Seasonal ARMA

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

0.2 0.4 0.6 0.8 1.2 1.4 1.6

ν

f(

ν

)

Spectral density of AR(1)

(12)

Example: Seasonal ARMA

Another view:

1 − Φ1z12 = ⇔ z = reiθ,

with r = |Φ1|−1/12, ei12θ = e−iarg(Φ1)

For Φ1 > 0, the twelve poles are at |Φ1|−1/12eikπ/6 for

k = 0,±1, ,±5,6

So the spectral density gets peaked as e−2πiν passes near

(13)

Example: Multiplicative seasonal ARMA

Consider (1 − Φ1B12)(1 − φ1B)Xt = Wt

f(ν) = σw2

(1 − 2Φ1 cos(24πν) + Φ21)(1 − 2φ1 cos(2πν) + φ21)

This is a scaled product of the AR(1) spectrum and the (periodic) AR(1)12 spectrum

(14)

Example: Multiplicative seasonal ARMA

1

f(

ν

)

Spectral density of AR(1)AR(1)

12: (1+0.5 B)(1+0.2 B 12

) X

(15)

Introduction to Time Series Analysis Lecture 17.

1 Review: Spectral distribution function, spectral density Rational spectra Poles and zeros

3 Examples

(16)

Time-invariant linear filters

A filter is an operator; given a time series {Xt}, it maps to a time series

{Yt} We can think of a linear process Xt = P∞

j=0 ψjWt−j as the output of

a causal linear filter with a white noise input.

A time series {Yt} is the output of a linear filter

A = {at,j : t, j ∈ Z} with input {Xt} if

Yt =

X

j=−∞

at,jXj

If at,t−j is independent of t (at,t−j = ψj), then we say that the

filter is time-invariant.

(17)

Time-invariant linear filters: Examples

1 Yt = X−t is linear, but not time-invariant

2 Yt = 13(Xt−1 + Xt + Xt+1) is linear, time-invariant, but not causal:

ψj =

 

3 if |j| ≤ 1,

0 otherwise

3 For polynomials φ(B), θ(B) with roots outside the unit circle,

(18)

Time-invariant linear filters

The operation

X

j=−∞

ψjXt−j

(19)

Time-invariant linear filters

The sequence ψ is also called the impulse response, since the output {Yt} of the linear filter in response to a unit impulse,

Xt =

 

1 if t = 0,

0 otherwise, is

Yt = ψ(B)Xt =

X

j=−∞

(20)

Introduction to Time Series Analysis Lecture 17.

1 Review: Spectral distribution function, spectral density Rational spectra Poles and zeros

3 Examples

(21)

Frequency response of a time-invariant linear filter

Suppose that {Xt} has spectral density fx(ν) and ψ is stable, that is,

P∞

j=−∞ |ψj| < ∞ Then Yt = ψ(B)Xt has spectral density

fy(ν) = ψ e2πiν

fx(ν)

The function ν 7→ ψ(e2πiν) (the polynomial ψ(z) evaluated on the unit circle) is known as the frequency response or transfer function of the linear filter

The squared modulus, ν 7→ |ψ(e2πiν)|2 is known as the power transfer

(22)

Frequency response of a time-invariant linear filter

For stable ψ, Yt = ψ(B)Xt has spectral density

fy(ν) =

ψ e2πiν

fx(ν)

We have seen that a linear process, Yt = ψ(B)Wt, is a special case, since

fy(ν) = |ψ(e2πiν)|2σw2 = |ψ(e2πiν)|2fw(ν)

When we pass a time series {Xt} through a linear filter, the spectral density is multiplied, frequency-by-frequency, by the squared modulus of the

frequency response ν 7→ |ψ(e2πiν)|2

(23)

Frequency response of a filter: Details

Why is fy(ν) = ψ e2πiν

fx(ν)? First,

γy(h) = E

X

j=−∞

ψjXt−j

X

k=−∞

ψkXt+h−k

=

X

j=−∞

ψj

X

k=−∞

ψkE[Xt+h−kXt−j]

=

X

j=−∞

ψj

X

k=−∞

ψkγx(h + j − k) =

X

j=−∞

ψj

X

l=−∞

ψh+j−lγx(l)

(24)

Frequency response of a filter: Details

fy(ν) =

X

h=−∞

γ(h)e−2πiνh

=

X

h=−∞

X

j=−∞

ψj

X

l=−∞

ψh+j−lγx(l)e

−2πiνh

=

X

j=−∞

ψje2πiνj

X

l=−∞

γx(l)e−2πiνl

X

h=−∞

ψh+j−le

−2πiν(h+j−l)

= ψ(e2πiνj)fx(ν)

X

h=−∞

(25)

Frequency response: Examples

For a linear process Yt = ψ(B)Wt, fy(ν) =

ψ e2πiν

σw2

For an ARMA model, ψ(B) = θ(B)/φ(B), so {Yt} has the rational

spectrum

fy(ν) = σw2

θ(e−2πiν)

φ (e−2πiν)

= σw2 θ q Qq j=1 e

−2πiν

− zj φ2

p

Qp

j=1 |e

−2πiν − p

j|2

,

where pj and zj are the poles and zeros of the rational function

(26)

Frequency response: Examples

Consider the moving average

Yt = 2k +

k

X

j=−k

Xt−j

This is a time invariant linear filter (but it is not causal) Its transfer function is the Dirichlet kernel

ψ(e−2πiν) = Dk(2πν) = 2k +

k

X

j=−k

e−2πijν

=

(27)

Example: Moving average

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5 −0.4

−0.2 0.2 0.4 0.6 0.8

ν

(28)

Example: Moving average

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

0.1 0.2 0.3 0.4 0.5 0.6 0.7 0.8 0.9

ν

Squared modulus of transfer function of moving average (k=5)

(29)

Example: Differencing

Consider the first difference

Yt = (1 − B)Xt

This is a time invariant, causal, linear filter Its transfer function is

ψ(e−2πiν) = − e−2πiν,

(30)

Example: Differencing

0 0.05 0.1 0.15 0.2 0.25 0.3 0.35 0.4 0.45 0.5

0.5 1.5 2.5 3.5

ν

Transfer function of first difference

(31)

Introduction to Time Series Analysis Lecture 17.

1 Review: Spectral distribution function, spectral density Rational spectra Poles and zeros

3 Examples

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