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arxivecon.EMmath.STstat.MEstat.ML2026-07-07

Factor-Augmented Machine Learning Panel Regressions

Andrii Babii, Luca Barbaglia, Eric Ghysels, Jonas Striaukas

This paper develops the asymptotic theory for high-dimensional panel data regressions in settings with cross-sectionally dependent errors driven by common shocks. We consider a factor-augmented sparse-group LASSO estimator that combines MIDAS aggregation with latent factors. The estimator can take advantage of the mixed-frequency group structure in the time-series dimension. Theory shows that it can outperform the standard LASSO estimator both for prediction and estimation while allowing for cross-sectional dependence.

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arxivmath.STcs.LGstat.MEstat.ML2026-07-20

Unveiling Invariant and Transferable Latent Factors Across Heterogeneous Environments via ATLAS

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arxivmath.STstat.MEstat.ML2026-07-20

How Fast Do Signatures Learn? Statistical Theory and Applications for Path Regression

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Many prediction and decision-making problems in operations research involve path-valued covariates -- data that evolve over time -- for which path signatures have become a canonical feature representation. Their use is justified by a universal approximation theorem, but this is a…

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