Parameter Inference for Hypo-Elliptic Diffusions under a Weak Design Condition

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Auteurs principaux: Iguchi, Yuga, Beskos, Alexandros
Format: Preprint
Publié: 2023
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author Iguchi, Yuga
Beskos, Alexandros
author_facet Iguchi, Yuga
Beskos, Alexandros
contents We address the problem of parameter estimation for degenerate diffusion processes defined via the solution of Stochastic Differential Equations (SDEs) with diffusion matrix that is not full-rank. For this class of hypo-elliptic diffusions recent works have proposed contrast estimators that are asymptotically normal, provided that the step-size in-between observations $Δ=Δ_n$ and their total number $n$ satisfy $n \to \infty$, $n Δ_n \to \infty$, $Δ_n \to 0$, and additionally $Δ_n = o (n^{-1/2})$. This latter restriction places a requirement for a so-called `rapidly increasing experimental design'. In this paper, we overcome this limitation and develop a general contrast estimator satisfying asymptotic normality under the weaker design condition $Δ_n = o(n^{-1/p})$ for general $p \ge 2$. Such a result has been obtained for elliptic SDEs in the literature, but its derivation in a hypo-elliptic setting is highly non-trivial. We provide numerical results to illustrate the advantages of the developed theory.
format Preprint
id arxiv_https___arxiv_org_abs_2312_04444
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Parameter Inference for Hypo-Elliptic Diffusions under a Weak Design Condition
Iguchi, Yuga
Beskos, Alexandros
Statistics Theory
Methodology
We address the problem of parameter estimation for degenerate diffusion processes defined via the solution of Stochastic Differential Equations (SDEs) with diffusion matrix that is not full-rank. For this class of hypo-elliptic diffusions recent works have proposed contrast estimators that are asymptotically normal, provided that the step-size in-between observations $Δ=Δ_n$ and their total number $n$ satisfy $n \to \infty$, $n Δ_n \to \infty$, $Δ_n \to 0$, and additionally $Δ_n = o (n^{-1/2})$. This latter restriction places a requirement for a so-called `rapidly increasing experimental design'. In this paper, we overcome this limitation and develop a general contrast estimator satisfying asymptotic normality under the weaker design condition $Δ_n = o(n^{-1/p})$ for general $p \ge 2$. Such a result has been obtained for elliptic SDEs in the literature, but its derivation in a hypo-elliptic setting is highly non-trivial. We provide numerical results to illustrate the advantages of the developed theory.
title Parameter Inference for Hypo-Elliptic Diffusions under a Weak Design Condition
topic Statistics Theory
Methodology
url https://arxiv.org/abs/2312.04444