A useful variant of the Davis--Kahan theorem for statisticians

The Davis--Kahan theorem is used in the analysis of many statistical procedures to bound the distance between subspaces spanned by population eigenvectors and their sample versions. It relies on an eigenvalue separation condition between certain relevant population and sample eigenvalues. We present a variant of this result that depends only on a population eigenvalue separation condition, making it more natural and convenient for direct application in statistical contexts, and improving the bounds in some cases. We also provide an extension to situations where the matrices under study may be asymmetric or even non-square, and where interest is in the distance between subspaces spanned by corresponding singular vectors.Comment: 12 page

Exchange Rates and the Canadian Economy

An objective assessment of the effects of the appreciation of the Canadian dollar in 2003 and 2004 on exports and imports requires a detailed review of the numerous other factors which may have been at play. Dion, Laurence, and Zheng discuss the influences that have affected Canada's international trade over the past two years, including exchange rate movements, global and sector-specific shocks, constraints on the domestic supply of a few products, and competition from emerging economies, most notably, China. The analysis is complemented with econometric models developed at the Bank which provide statistically valid estimates of the contribution of the Canadian-dollar appreciation to the recent developments in exports and imports.

Variable-Length Coding with Feedback: Finite-Length Codewords and Periodic Decoding

Theoretical analysis has long indicated that feedback improves the error exponent but not the capacity of single-user memoryless channels. Recently Polyanskiy et al. studied the benefit of variable-length feedback with termination (VLFT) codes in the non-asymptotic regime. In that work, achievability is based on an infinite length random code and decoding is attempted at every symbol. The coding rate backoff from capacity due to channel dispersion is greatly reduced with feedback, allowing capacity to be approached with surprisingly small expected latency. This paper is mainly concerned with VLFT codes based on finite-length codes and decoding attempts only at certain specified decoding times. The penalties of using a finite block-length $N$ and a sequence of specified decoding times are studied. This paper shows that properly scaling $N$ with the expected latency can achieve the same performance up to constant terms as with $N = \infty$. The penalty introduced by periodic decoding times is a linear term of the interval between decoding times and hence the performance approaches capacity as the expected latency grows if the interval between decoding times grows sub-linearly with the expected latency.Comment: 8 pages. A shorten version is submitted to ISIT 201