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The Laplace-type estimator (LTE) is a simulation-based alternative to the classical extremum estimator that has gained popularity in applied research. We show that even though the estimator has desirable asymptotic properties, in small samples the point estimate provided by LTE may not necessarily converge to the extremum of the sample objective function. Furthermore, we suggest a simple test to verify if the estimator converges. We illustrate these results by estimating a prototype dynamic stochastic general equilibrium model widely used in macroeconomics research.

Estimating parameters of constrained optimization models in a consistent way requires a different set of methods than what is available in a typical econometric toolkit. We identify three complications likely to arise in this context, and suggest solutions to those complications: (i) the bi-level programming character, (ii) ill-posedness, and (iii) derivation of estimator properties. The solutions suggested involve a combination of numerical techniques and utilization of out-of-sample information through Bayesian techniques. The proposed framework is also suitable for typical empirical problems arising in trade analysis such as the estimation of trade equilibrium models and data balancing exercises.

This chapter develops an asymptotic theory for a general transformation model with a time trend, stationary regressors, and unit root nonstationary regressors. This model extends that of Han (1987) to incorporate time trend and nonstationary regressors. When the transformation is specified as an identity function, the model reduces to the conventional cointegrating regression, possibly with a time trend and other stationary regressors, which has been studied in Phillips and Durlauf (1986) and Park and Phillips (1988, 1989). The limiting distributions of the extremum estimator of the transformation parameter and the plug-in estimators of other model parameters are found to critically depend upon the transformation function and the order of the time trend. Simulations demonstrate that the estimators perform well in finite samples.

This volume of Advances in Econometrics is devoted to dynamic stochastic general equilibrium (DSGE) models, which have gained popularity in both academic and policy circles as a theoretically and methodologically coherent way of analyzing a variety of issues in empirical macroeconomics. The volume is divided into two parts. The first part covers important topics in DSGE modeling and estimation practice, including the modeling and role of expectations, the study of alternative pricing models, the problem of non-invertibility in structural VARs, the possible weak identification in new open economy macro models, and the modeling of trend inflation. The second part is devoted to innovations in econometric methodology. The papers in this section advance new techniques for addressing key theoretical and inferential problems and include discussion and applications of Laplace-type, frequency domain, empirical likelihood, and method of moments estimators.

The discrete Fourier transform (dft) of a fractional process is studied. An exact representation of the dft is given in terms of the component data, leading to the frequency domain form of the model for a fractional process. This representation is particularly useful in analyzing the asymptotic behavior of the dft and periodogram in the nonstationary case when the memory parameter d≥12. Various asymptotic approximations are established including some new hypergeometric function representations that are of independent interest. It is shown that smoothed periodogram spectral estimates remain consistent for frequencies away from the origin in the nonstationary case provided the memory parameter d < 1. When d = 1, the spectral estimates are inconsistent and converge weakly to random variates. Applications of the theory to log periodogram regression and local Whittle estimation of the memory parameter are discussed and some modified versions of these procedures are suggested for nonstationary cases.

The purpose of this paper is to eliminate instability which may occur when a human stiffens his arms in physical human–robot interaction by estimating the human hand stiffness and presenting a modified vibration index.

Human hand stiffness is first estimated in real time as a prior indicator of instability by capturing the arm configuration and modeling the level of muscle co-contraction in the human’s arms. A time-domain vibration index based on the interaction force is then modified to reduce the delay in instability detection. The instability is confirmed when the vibration index exceeds a given threshold. The virtual damping coefficient in admittance controller is adjusted accordingly to ensure stability in physical human–robot interaction.

By estimating the human hand stiffness and modifying the vibration index, the instability which may occur in stiff environment in physical human–robot interaction is detected and eliminated, and the time delay is reduced. The experimental results demonstrate significant improvement in stabilizing the system when the human operator stiffens his arms.

The originality is in estimating the human hand stiffness online as a prior indicator of instability by capturing the arm configuration and modeling the level of muscle co-contraction in the human’s arms. A modification of the vibration index is also an originality to reduce the time delay of instability detection.

In this chapter we demonstrate the construction of inverse test confidence intervals for the turning-points in estimated nonlinear relationships by the use of the marginal or first derivative function. First, we outline the inverse test confidence interval approach. Then we examine the relationship between the traditional confidence intervals based on the Wald test for the turning-points for a cubic, a quartic, and fractional polynomials estimated via regression analysis and the inverse test intervals. We show that the confidence interval plots of the marginal function can be used to estimate confidence intervals for the turning-points that are equivalent to the inverse test. We also provide a method for the interpretation of the confidence intervals for the second derivative function to draw inferences for the characteristics of the turning-point.

This method is applied to the examination of the turning-points found when estimating a quartic and a fractional polynomial from data used for the estimation of an Environmental Kuznets Curve. The Stata do files used to generate these examples are listed in Appendix A along with the data.

The purpose of this paper is to solve the problem of tuning of EKF parameters (process and measurement noise co-variance matrices) designed for attitude estimation using Global Positioning System (GPS) aided inertial sensors by employing a Human Opinion Dynamics (HOD)-based optimization technique and modifying the technique using maximum likelihood estimators and study its performance as compared to Particle Swarm Optimization (PSO) and manual tuning.

A model for the determination of attitude of flight vehicles using inertial sensors and GPS measurement is designed and experiments are carried out to collect raw sensor and reference data. An HOD-based model is utilized to estimate the optimized process and measurement noise co-variance matrix. Added to it, few modifications are proposed in the HOD model by utilizing maximum likelihood estimator and finally the results obtained by the proposed schemes analysed.

Analysis of the results shows that utilization of evolutionary algorithms for tuning is a significant improvement over manual tuning and both HOD and PSO-based methods are able to achieve the same level of accuracy. However, the HOD methods show better convergence and is easier to implement in terms of tuning parameters. Also, utilization of maximum likelihood estimator shows better search during initial iterations which increases the robustness of the algorithm.

The paper is unique in its sense that it utilizes a HOD-based model to solve tuning problem of EKF for attitude estimation.

The purpose of this paper is to briefly summarize and review the theories and methods of complex structures’ dynamic reliability. Complex structures are usually assembled from multiple components and subjected to time-varying loads of aerodynamic, structural, thermal and other physical fields; its reliability analysis is of great significance to ensure the safe operation of large-scale equipment such as aviation and machinery.

In this paper for the single-objective dynamic reliability analysis of complex structures, the calculation can be categorized into Monte Carlo (MC), outcrossing rate, envelope functions and extreme value methods. The series-parallel and expansion methods, multi-extremum surrogate models and decomposed-coordinated surrogate models are summarized for the multiobjective dynamic reliability analysis of complex structures.

The numerical complex compound function and turbine blisk are used as examples to illustrate the performance of single-objective and multiobjective dynamic reliability analysis methods. Then the future development direction of dynamic reliability analysis of complex structures is prospected.

The paper provides a useful reference for further theoretical research and engineering application.