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On robust tail index estimation for linear long-memory processes
Journal article   Peer reviewed

On robust tail index estimation for linear long-memory processes

Jan Beran, Bikramjit Das and Dieter Schell
Journal of time series analysis, Vol.33(3), pp.406-423
05/2012

Abstract

Mathematics Mathematics, Interdisciplinary Applications Physical Sciences Science & Technology Statistics & Probability
We consider robust estimation of the tail index a for linear long-memory processes with i.i.d. innovations ej following a symmetric a-stable law (1 < a < 2) and coefficients aj similar to c.j-beta. Estimates based on the left and right tail respectively are obtained together with a combined statistic with improved efficiency, and a test statistic comparing both tails. Asymptotic results are derived. Simulations illustrate the finite sample performance.

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