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Asymptotic properties of maximum likelihood estimators for Heston models based on continuous time observations

Statistics Theory 2016-07-25 v3 Statistical Finance Statistics Theory

Abstract

We study asymptotic properties of maximum likelihood estimators for Heston models based on continuous time observations of the log-price process. We distinguish three cases: subcritical (also called ergodic), critical and supercritical. In the subcritical case, asymptotic normality is proved for all the parameters, while in the critical and supercritical cases, non-standard asymptotic behavior is described.

Keywords

Cite

@article{arxiv.1310.4783,
  title  = {Asymptotic properties of maximum likelihood estimators for Heston models based on continuous time observations},
  author = {Matyas Barczy and Gyula Pap},
  journal= {arXiv preprint arXiv:1310.4783},
  year   = {2016}
}

Comments

44 pages. Title has been changed