Principal differential analysis : Data reduction by differential operators

Functional data are observations that are either themselves functions or are naturally representable as functions. When these functions can be considered smooth, it is natural to use their derivatives in exploring their variation. Principal differential analysis (PDA) identifies a linear differential operator L = w 0 I + w 1 D +... + w m-1 D m-1 + D m that comes as close as possible to annihilating a sample of functions. Convenient procedures for estimating the m weighting functions w j are developed. The estimated differential operator L is analogous to the projection operator used as the data annihilator in principal components analysis and thus can be viewed as a type of data reduction or exploration tool. The corresponding linear differential equation may also have a useful substantive interpretation. Modelling and regularization features can also be incorporated into PDA.