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It is common for long financial time series to exhibit gradual change in the unconditional volatility. We propose a new model that captures this type of nonstationarity in a parsimonious way. The model augments the volatility equation of a…

Econometrics · Economics 2024-10-15 Niklas Ahlgren , Alexander Back , Timo Teräsvirta

In this paper, we present the asymptotic properties of the moment estimator for autoregressive (AR for short) models subject to Markovian changes in regime under the assumption that the errors are uncorrelated but not necessarily…

Statistics Theory · Mathematics 2025-03-06 Yacouba Boubacar Mainassara , Landy Rabehasaina , Armel Bra

As the dynamic structure of the financial markets is subject to dramatic changes, a model capable of providing consistently accurate volatility estimates must not make strong assumptions on how prices change over time. Most volatility…

Methodology · Statistics 2017-08-28 Wilson Ye Chen , Richard H. Gerlach

This paper obtains asymptotic results for parametric inference using prediction-based estimating functions when the data are high frequency observations of a diffusion process with an infinite time horizon. Specifically, the data are…

Statistics Theory · Mathematics 2020-07-27 Emil S. Jørgensen , Michael Sørensen

We present a data-driven framework based on Lyapunov theory to provide stability guarantees for a family of hybrid systems. In particular, we are interested in the asymptotic stability of switching linear systems whose switching sequence is…

Systems and Control · Electrical Eng. & Systems 2023-02-13 Adrien Banse , Zheming Wang , Raphaël M. Jungers

The use of standard statistical methods, such as maximum likelihood, is often justified based on their asymptotic properties. For suitably regular models, this theory is standard but, when the model is non-regular, e.g., the support depends…

Methodology · Statistics 2016-08-25 Ryan Martin , Yi Lin

Khasminski's \cite{chas1980stochastic} showed that many of the asymptotic stability and the integrability properties of the solutions to the Stochastic Differential Equations (SDEs) can be obtained using Lyapunov functions techniques. These…

Numerical Analysis · Mathematics 2016-08-11 Lukasz Szpruch , X\=ılíng Zhāng

In this paper, we study parametric nonlinear regression under the Harris recurrent Markov chain framework. We first consider the nonlinear least squares estimators of the parameters in the homoskedastic case, and establish asymptotic theory…

Statistics Theory · Mathematics 2016-09-15 Degui Li , Dag Tjøstheim , Jiti Gao

In this paper, we show that the recent integration of statistical models with deep recurrent neural networks provides a new way of formulating volatility (the degree of variation of time series) models that have been widely used in time…

Machine Learning · Computer Science 2018-12-06 Rui Luo , Weinan Zhang , Xiaojun Xu , Jun Wang

We provide several characterizations of convergence to unstable equilibria in nonlinear systems. Our current contribution is three-fold. First we present simple algebraic conditions for establishing local convergence of non-trivial…

Dynamical Systems · Mathematics 2016-11-17 A. N. Gorban , I. Yu. Tyukin , H. Nijmeijer

Modelling real world systems involving humans such as biological processes for disease treatment or human behavior for robotic rehabilitation is a challenging problem because labeled training data is sparse and expensive, while high…

Systems and Control · Electrical Eng. & Systems 2020-06-16 Wenxin Xiao , Armin Lederer , Sandra Hirche

This paper develops necessary and sufficient conditions for the preservation of asymptotic convergence rates of deterministically and stochastically perturbed ordinary differential equations with regularly varying nonlinearity close to…

Classical Analysis and ODEs · Mathematics 2014-09-04 John A. D. Appleby , Denis D. Patterson

This article establishes an asymptotic theory for volatility estimation in an infinite-dimensional setting. We consider mild solutions of semilinear stochastic partial differential equations and derive a stable central limit theorem for the…

Statistics Theory · Mathematics 2023-03-14 Fred Espen Benth , Dennis Schroers , Almut E. D. Veraart

Range-measured return contains more information than the traditional scalar-valued return. In this paper, we propose to model the [low, high] price range as a random interval and suggest an interval-valued GARCH (Int-GARCH) model for the…

Methodology · Statistics 2019-01-11 Yan Sun , Guanghua Lian , Zudi Lu , Jennifer Loveland , Isaac Blackhurst

In this paper, we study the inverse problem for a class of abstract ultraparabolic equations which is well-known to be ill-posed. We employ some elementary results of semi-group theory to present the formula of solution, then show the…

Analysis of PDEs · Mathematics 2015-12-10 Vo Anh Khoa , Le Trong Lan , Nguyen Huy Tuan , Tran The Hung

This paper proposes a semiparametric stochastic volatility (SV) model that relaxes the restrictive Gaussian assumption in both the return and volatility error terms, allowing them to follow flexible, nonparametric distributions with…

Computation · Statistics 2025-06-03 Yudong Feng , Ashis Gangopadhyay

Drawing on ergodic theory, we introduce a novel training method for machine learning based forecasting methods for chaotic dynamical systems. The training enforces dynamical invariants--such as the Lyapunov exponent spectrum and fractal…

Machine Learning · Computer Science 2023-04-26 Jason A. Platt , Stephen G. Penny , Timothy A. Smith , Tse-Chun Chen , Henry D. I. Abarbanel

In this paper, we introduce an asymptotic test procedure to assess the stability of volatilities and cross-volatilites of linear and nonlinear multivariate time series models. The test is very flexible as it can be applied, for example, to…

Statistics Theory · Mathematics 2009-11-20 Alexander Aue , Siegfried Hörmann , Lajos Horváth , Matthew Reimherr

This work proposes a novel distributed framework for verifying the incremental stability of large-scale systems with unknown dynamics and known interconnection structures using graph neural networks. Our proposed approach relies on the…

Systems and Control · Electrical Eng. & Systems 2025-12-09 Ahan Basu , Mahathi Anand , Pushpak Jagtap

In 2019 Anthony Quas, Philippe Thieullen and Mohamed Zarrabi introduced the concept of strong fast invertibility for linear cocycles. It relates the growth of volumes between different initial times and, together with a condition on…

Dynamical Systems · Mathematics 2025-07-08 Florian Noethen