Wavelet-based estimation of long-memory parameter in stochastic volatility models using a robust log-periodogram

Fuente: arXiv
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Autori principali: N'Daam, Manganaw, Kpanzou, Tchilabalo Abozou, Katchekpele, Edoh
Natura: Preprint
Pubblicazione: 2025
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author N'Daam, Manganaw
Kpanzou, Tchilabalo Abozou
Katchekpele, Edoh
author_facet N'Daam, Manganaw
Kpanzou, Tchilabalo Abozou
Katchekpele, Edoh
contents In this paper, we propose a novel method for estimating the long-memory parameter in time series. By combining the multi-resolution framework of wavelets with the robustness of the Least Absolute Deviations (LAD) criterion, we introduce a periodogram providing a robust alternative to classical methods in the presence of non-Gaussian noise. Incorporating this periodogram into a log-periodogram regression, we develop a new estimator. Simulation studies demonstrate that our estimator outperforms the Geweke and Porter-Hudak (GPH) and Wavelet-Based Log-Periodogram (WBLP) estimators, particularly in terms of mean squared error, across various sample sizes and parameter configurations.
format Preprint
id arxiv_https___arxiv_org_abs_2502_20101
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Wavelet-based estimation of long-memory parameter in stochastic volatility models using a robust log-periodogram
N'Daam, Manganaw
Kpanzou, Tchilabalo Abozou
Katchekpele, Edoh
Methodology
62M10, 62J05
In this paper, we propose a novel method for estimating the long-memory parameter in time series. By combining the multi-resolution framework of wavelets with the robustness of the Least Absolute Deviations (LAD) criterion, we introduce a periodogram providing a robust alternative to classical methods in the presence of non-Gaussian noise. Incorporating this periodogram into a log-periodogram regression, we develop a new estimator. Simulation studies demonstrate that our estimator outperforms the Geweke and Porter-Hudak (GPH) and Wavelet-Based Log-Periodogram (WBLP) estimators, particularly in terms of mean squared error, across various sample sizes and parameter configurations.
title Wavelet-based estimation of long-memory parameter in stochastic volatility models using a robust log-periodogram
topic Methodology
62M10, 62J05
url https://arxiv.org/abs/2502.20101