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When dealing with certain kind of complex phenomena the theoretician may face some difficulties -- typically a failure to have access to information for properly characterize the system -- for applying the full power of the standard…

Statistical Mechanics · Physics 2007-05-23 Roberto Luzzi , Áurea R. Vasconcellos , J. Galvão Ramos

It has been shown that some macroeconomic time series, especially those where outliers could be present, can be well modelled using heavy tailed distributions for the noise components. Methods for deciding when and where heavy-tailed models…

Statistics Theory · Mathematics 2007-06-13 J. A. D. Aston

A new estimator is proposed for estimating the tail exponent of a heavy-tailed distribution. This estimator, referred to as the layered Hill estimator, is a generalization of the traditional Hill estimator, building upon a layered structure…

Statistics Theory · Mathematics 2026-04-20 Taegyu Kang , Takashi Owada

A theoretical expression is derived for the mean squared error of a nonparametric estimator of the tail dependence coefficient, depending on a threshold that defines which rank delimits the tails of a distribution. We propose a new method…

Methodology · Statistics 2023-07-25 Matthieu Garcin , Maxime L. D. Nicolas

This book chapter illustrates how to apply extreme value statistics to financial time series data. Such data often exhibits strong serial dependence, which complicates assessment of tail risks. We discuss the two main approches to tail risk…

Risk Management · Quantitative Finance 2024-09-30 Anna Kiriliouk , Chen Zhou

The applicability conditions of a recently reported Central Limit Theorem-based approximation method in statistical physics are investigated and rigorously determined. The failure of this method at low and intermediate temperature is proved…

Statistical Mechanics · Physics 2012-03-21 Bruno Leggio , Oleg Lychkovskiy , Antonino Messina

In this paper, we establish the central limit theorem (CLT) for linear spectral statistics (LSS) of large-dimensional sample covariance matrix when the population covariance matrices are not uniformly bounded, which is a nontrivial…

Statistics Theory · Mathematics 2022-05-17 Zhijun Liu , Jiang Hu , Zhidong Bai , Haiyan Song

We investigate a way of comparing and classifying tails of random variables. Our approach extends the notion of classical indices, such as exponential and moment indices, which are widely used measuring heaviness of tail functions. A…

Probability · Mathematics 2013-10-07 Jaakko Lehtomaa

The most popular approach in extreme value statistics is the modelling of threshold exceedances using the asymptotically motivated generalised Pareto distribution. This approach involves the selection of a high threshold above which the…

Methodology · Statistics 2014-05-27 Ioannis Papastathopoulos , Jonathan A. Tawn

A fundamental problem in analysis of complex systems is getting a reliable estimate of entropy of their probability distributions over the state space. This is difficult because unsampled states can contribute substantially to the entropy,…

Data Analysis, Statistics and Probability · Physics 2023-07-19 Damián G. Hernández , Ahmed Roman , Ilya Nemenman

For a fixed positive integer $\;k,\;$ limit laws of linearly normalized $\;k$-th upper order statistics are well known. In this article, a comprehensive study of tail behaviours of limit laws of normalized $k$-th upper order statistics…

Probability · Mathematics 2015-12-11 Sreenivasan Ravi , Mandagere Chandrashekhar Manohar

Under the high-dimensional setting that data dimension and sample size tend to infinity proportionally, we derive the central limit theorem (CLT) for linear spectral statistics (LSS) of large-dimensional sample covariance matrix. Different…

Statistics Theory · Mathematics 2021-06-21 Liu Zhijun , Bai Zhidong , Hu Jiang , Song Haiyan

Identifying groups of variables that may be large simultaneously amounts to finding out which joint tail dependence coefficients of a multivariate distribution are positive. The asymptotic distribution of a vector of nonparametric,…

Methodology · Statistics 2018-02-28 Maël Chiapino , Anne Sabourin , Johan Segers

We show central limit theorems (CLT) for the Stieltjes transforms or more general analytic functions of symmetric matrices with independent heavy tailed entries, including entries in the domain of attraction of $\alpha$-stable laws and…

Probability · Mathematics 2015-06-12 Florent Benaych-Georges , Alice Guionnet , Camille Male

The vast amount of data produced everyday (so-called 'digital traces') and available nowadays represent a gold mine for the social sciences, especially in a computational context, that allows to fully extract their informational and…

Methodology · Statistics 2024-01-05 Serena Signorelli , Matteo Fontana , Lorenzo Gabrielli , Michele Vespe

In risk management, tail risks are of crucial importance. The quality of a tail model, which is determined by data from an unknown distribution, depends critically on the subset of data used to model the tail. Based on a suitably weighted…

Methodology · Statistics 2021-01-19 Ingo Hoffmann , Christoph J. Börner

High-energy phenomena presenting strong dynamical correlations, long-range interactions and microscopic memory effects are well described by nonextensive versions of the canonical Boltzmann-Gibbs statistical mechanics. After a brief…

High Energy Physics - Lattice · Physics 2014-05-30 Rafael B. Frigori

Empirical likelihood is a well-known nonparametric method in statistics and has been widely applied in statistical inference. The method has been employed by Lu and Peng (2002) to constructing confidence intervals for the tail index of a…

Methodology · Statistics 2019-04-19 Yizeng Li , Yongcheng Qi

Session-based recommendation focuses on the prediction of user actions based on anonymous sessions and is a necessary method in the lack of user historical data. However, none of the existing session-based recommendation methods explicitly…

Information Retrieval · Computer Science 2020-08-05 Siyi Liu , Yujia Zheng

In this paper we propose a new approach to estimation of the tail exponent in financial stock markets. We begin the study with the finite sample behavior of the Hill estimator under {\alpha}-stable distributions. Using large Monte Carlo…

Computational Finance · Quantitative Finance 2012-01-24 Jozef Barunik , Lukas Vacha
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