A mixture autoregressive model based on Gaussian and Student's $t$-distributions

Fuente: arXiv
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Main Author: Virolainen, Savi
Format: Preprint
Published: 2020
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author Virolainen, Savi
author_facet Virolainen, Savi
contents We introduce a new mixture autoregressive model which combines Gaussian and Student's $t$ mixture components. The model has very attractive properties analogous to the Gaussian and Student's $t$ mixture autoregressive models, but it is more flexible as it enables to model series which consist of both conditionally homoscedastic Gaussian regimes and conditionally heteroscedastic Student's $t$ regimes. The usefulness of our model is demonstrated in an empirical application to the monthly U.S. interest rate spread between the 3-month Treasury bill rate and the effective federal funds rate.
format Preprint
id arxiv_https___arxiv_org_abs_2003_05221
institution arXiv
publishDate 2020
record_format arxiv
spellingShingle A mixture autoregressive model based on Gaussian and Student's $t$-distributions
Virolainen, Savi
Econometrics
Statistics Theory
Methodology
62M10
We introduce a new mixture autoregressive model which combines Gaussian and Student's $t$ mixture components. The model has very attractive properties analogous to the Gaussian and Student's $t$ mixture autoregressive models, but it is more flexible as it enables to model series which consist of both conditionally homoscedastic Gaussian regimes and conditionally heteroscedastic Student's $t$ regimes. The usefulness of our model is demonstrated in an empirical application to the monthly U.S. interest rate spread between the 3-month Treasury bill rate and the effective federal funds rate.
title A mixture autoregressive model based on Gaussian and Student's $t$-distributions
topic Econometrics
Statistics Theory
Methodology
62M10
url https://arxiv.org/abs/2003.05221