WORKSHOP ON DEPENDENCE ANALYSIS
26 and 27 of SEPTEMBER, 2025
Institute of Mathematics, Statistics and Scientific
Computation of the University of Campinas, Brazil
SATELLITE WORKSHOP OF
8th BRAZILIAN CONFERENCE ON STATISTICAL MODELING IN INSURANCE AND FINANCE
Title: Local Inverse Method: Constructing Networks with Local Partial Correlation
We revisit the Local Inverse Method for reconstructing complex networks from observational data, with a particular focus on scenarios where the number of variables exceeds the number of observations. This approach relies on estimating partial correlation coefficients, integrating both classical and Bayesian frameworks for structural inference. We provide an overview of previous results and discuss its applicability in new contexts, highlighting computational difficulties in recovering causal structures.