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Stochastic volatility models, where the volatility is a stochastic process, can capture most of the essential stylized facts of implied volatility surfaces and give more realistic dynamics of the volatility smile/skew. However, they come…

Computational Finance · Quantitative Finance 2023-09-26 Abir Sridi , Paul Bilokon

We present new results for consistency of maximum likelihood estimators with a focus on multivariate mixed models. Our theory builds on the idea of using subsets of the full data to establish consistency of estimators based on the full…

Statistics Theory · Mathematics 2019-02-13 Karl Oskar Ekvall , Galin L. Jones

We consider a stable Cox--Ingersoll--Ross process driven by a standard Wiener process and a spectrally positive strictly stable L\'evy process, and we study asymptotic properties of the maximum likelihood estimator (MLE) for its growth rate…

Statistics Theory · Mathematics 2019-08-23 Matyas Barczy , Mohamed Ben Alaya , Ahmed Kebaier , Gyula Pap

Maximum regularized likelihood estimators (MRLEs) are arguably the most established class of estimators in high-dimensional statistics. In this paper, we derive guarantees for MRLEs in Kullback-Leibler divergence, a general measure of…

Machine Learning · Statistics 2018-10-18 Rui Zhuang , Johannes Lederer

We simultaneously estimate the four parameters of a subcritical Heston process. We do not restrict ourself to the case where the stochastic volatility process never reaches zero. In order to avoid the use of unmanageable stopping times and…

Probability · Mathematics 2018-09-05 Marie du Roy de Chaumaray

We undertake a detailed study of the performance of maximum likelihood (ML) estimators of the density matrix of finite-dimensional quantum systems, in order to interrogate generic properties of frequentist quantum state estimation. Existing…

Quantum Physics · Physics 2011-11-16 Raj Chakrabarti , Anisha Ghosh

We provide a detailed importance sampling analysis for variance reduction in stochastic volatility models. The optimal change of measure is obtained using a variety of results from large and moderate deviations: small-time, large-time,…

Pricing of Securities · Quantitative Finance 2021-11-02 Marc Geha , Antoine Jacquier , Zan Zuric

We analyze the problem of discrete distribution estimation under $\ell_1$ loss. We provide non-asymptotic upper and lower bounds on the maximum risk of the empirical distribution (the maximum likelihood estimator), and the minimax risk in…

Information Theory · Computer Science 2015-12-31 Yanjun Han , Jiantao Jiao , Tsachy Weissman

We study the problem of signal source localization using received signal strength measurements. We begin by presenting verifiable geometric conditions for sensor deployment that ensure the model's asymptotic localizability. Then we…

Systems and Control · Electrical Eng. & Systems 2025-05-20 Shenghua Hu , Guangyang Zeng , Wenchao Xue , Haitao Fang , Junfeng Wu , Biqiang Mu

This paper generalizes asymptotic properties obtained in the observation-driven times series models considered by \cite{dou:kou:mou:2013} in the sense that the conditional law of each observation is also permitted to depend on the…

Statistics Theory · Mathematics 2015-06-08 Randal Douc , François Roueff , Tepmony Sim

We investigate the behavior of the nonparametric maximum likelihood estimator $\hat{f}_n$ for a decreasing density $f$ near the boundaries of the support of $f$. We establish the limiting distribution of $\hat{f}_n(n^{-\alpha})$, where we…

Statistics Theory · Mathematics 2016-08-16 Vladimir N. Kulikov , Hendrik P. Lopuhaä

Estimating model parameters is a crucial step in mathematical modelling and typically involves minimizing the disagreement between model predictions and experimental data. This calibration data can change throughout a study, particularly if…

Quantitative Methods · Quantitative Biology 2023-11-03 Tyler Cassidy

A variety of estimators for the parameters of the Generalized Pareto distribution, the approximating distribution for excesses over a high threshold, have been proposed, always assuming the underlying data to be independent. We recently…

Applications · Statistics 2016-05-26 Lukas Martig , Jürg Hüsler

The behavior of maximum likelihood estimates (MLEs) and the likelihood ratio statistic in a family of problems involving pointwise nonparametric estimation of a monotone function is studied. This class of problems differs radically from the…

Statistics Theory · Mathematics 2009-09-29 Moulinath Banerjee

Consider a parametrized family of general hidden Markov models, where both the observed and unobserved components take values in a complete separable metric space. We prove that the maximum likelihood estimator (MLE) of the parameter is…

Statistics Theory · Mathematics 2011-03-10 Randal Douc , Eric Moulines , Jimmy Olsson , Ramon van Handel

We analyse a Monte Carlo particle method for the simulation of the calibrated Heston-type local stochastic volatility (H-LSV) model. The common application of a kernel estimator for a conditional expectation in the calibration condition…

Computational Finance · Quantitative Finance 2025-04-22 Christoph Reisinger , Maria Olympia Tsianni

Stochastic volatility models have existed in Option pricing theory ever since the crash of 1987 which violated the Black-Scholes model assumption of constant volatility. Heston model is one such stochastic volatility model that is widely…

Computational Finance · Quantitative Finance 2021-12-10 Kumar Yashaswi

It is well known that, under standard regularity conditions, the maximum likelihood estimator (MLE) satisfies a central limit theorem and converges in distribution to a Gaussian random variable as the sample size grows. This paper…

Information Theory · Computer Science 2026-05-26 Leighton P. Barnes , Alex Dytso

This paper discusses asymptotic distributions of various estimators of the underlying parameters in some regression models with long memory (LM) Gaussian design and nonparametric heteroscedastic LM moving average errors. In the simple…

Statistics Theory · Mathematics 2008-12-18 Hongwen Guo , Hira L. Koul

We consider the classical estimation problem of an unknown drift parameter within classes of nondegenerate diffusion processes. Using rough path theory (in the sense of T. Lyons), we analyze the Maximum Likelihood Estimator (MLE) with…

Probability · Mathematics 2016-09-29 Joscha Diehl , Peter Friz , Hilmar Mai