Efficient estimation of stable Levy process with symmetric jumps

Fuente: arXiv
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Main Authors: Brouste, Alexandre, Masuda, Hiroki
Format: Preprint
Published: 2018
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author Brouste, Alexandre
Masuda, Hiroki
author_facet Brouste, Alexandre
Masuda, Hiroki
contents Efficient estimation of a non-Gaussian stable Levy process with drift and symmetric jumps observed at high frequency is considered. For this statistical experiment, the local asymptotic normality of the likelihood is proved with a non-singular Fisher information matrix through the use of a non-diagonal norming matrix. The asymptotic normality and efficiency of a sequence of roots of the associated likelihood equation are shown as well. Moreover, we show that a simple preliminary method of moments can be used as an initial estimator of a scoring procedure, thereby conveniently enabling us to bypass numerically demanding likelihood optimization. Our simulation results show that the one-step estimator can exhibit quite similar finite-sample performance as the maximum likelihood estimator.
format Preprint
id arxiv_https___arxiv_org_abs_1805_08926
institution arXiv
publishDate 2018
record_format arxiv
spellingShingle Efficient estimation of stable Levy process with symmetric jumps
Brouste, Alexandre
Masuda, Hiroki
Statistics Theory
Efficient estimation of a non-Gaussian stable Levy process with drift and symmetric jumps observed at high frequency is considered. For this statistical experiment, the local asymptotic normality of the likelihood is proved with a non-singular Fisher information matrix through the use of a non-diagonal norming matrix. The asymptotic normality and efficiency of a sequence of roots of the associated likelihood equation are shown as well. Moreover, we show that a simple preliminary method of moments can be used as an initial estimator of a scoring procedure, thereby conveniently enabling us to bypass numerically demanding likelihood optimization. Our simulation results show that the one-step estimator can exhibit quite similar finite-sample performance as the maximum likelihood estimator.
title Efficient estimation of stable Levy process with symmetric jumps
topic Statistics Theory
url https://arxiv.org/abs/1805.08926