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Modern statistical analyses often encounter datasets with massive sizes and heavy-tailed distributions. For datasets with massive sizes, traditional estimation methods can hardly be used to estimate the extreme value index directly. To…

Methodology · Statistics 2022-07-26 Yongxin Li , Liujun Chen , Deyuan Li , Hansheng Wang

One of the main goal of extreme value analysis is to estimate the probability of rare events given a sample from an unknown distribution. The upper tail behavior of this distribution is described by the extreme value index. We present a new…

Probability · Mathematics 2007-05-23 Laurent Gardes , Stephane Girard

We introduce a trimmed version of the Hill estimator for the index of a heavy-tailed distribution, which is robust to perturbations in the extreme order statistics. In the ideal Pareto setting, the estimator is essentially finite-sample…

Methodology · Statistics 2017-11-15 Shrijita Bhattacharya , Michael Kallitsis , Stilian Stoev

For extreme value estimation we propose to use a model with a Dirichlet process mixture of gamma densities in the center and generalized Pareto densities for the tails. Due to the randomness in the center and a heavy tailed density in the…

Methodology · Statistics 2013-04-01 Jairo Fuquene

Numerous robust estimators exist as alternatives to the maximum likelihood estimator (MLE) when a completely observed ground-up loss severity sample dataset is available. However, the options for robust alternatives to MLE become…

Methodology · Statistics 2024-02-22 Chudamani Poudyal

In this paper we develop a novel inferential approach based on geometric records for estimating the tail index of heavy-tailed distributions. We construct a maximum likelihood estimator for the Pareto model and establish its strong…

Statistics Theory · Mathematics 2026-04-30 Martín Alcalde , Raúl Gouet , Miguel Lafuente , F. Javier López , Gerardo Sanz

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

The extreme value theory is very popular in applied sciences including Finance, economics, hydrology and many other disciplines. In univariate extreme value theory, we model the data by a suitable distribution from the general max-domain of…

Methodology · Statistics 2019-05-09 Abhik Ghosh

The use of expectiles in risk management has recently gathered remarkable momentum due to their excellent axiomatic and probabilistic properties. In particular, the class of elicitable law-invariant coherent risk measures only consists of…

Statistics Theory · Mathematics 2023-03-21 Abdelaati Daouia , Simone A. Padoan , Gilles Stupfler

For measuring tail risk with scarce extreme events, extreme value analysis is often invoked as the statistical tool to extrapolate to the tail of a distribution. The presence of large datasets benefits tail risk analysis by providing more…

Methodology · Statistics 2023-12-18 Liujun Chen , Deyuan Li , Chen Zhou

Heavy tailed phenomena are naturally analyzed by extreme value statistics. A crucial step in such an analysis is the estimation of the extreme value index, which describes the tail heaviness of the underlying probability distribution. We…

Statistics Theory · Mathematics 2018-07-18 Hanan Ahmed , John H. J. Einmahl

A novel and comprehensive methodology designed to tackle the challenges posed by extreme values in the context of random censorship is introduced. The main focus is on the analysis of integrals based on the product-limit estimator of…

Statistics Theory · Mathematics 2025-02-18 Martin Bladt , Igor Rodionov

We revisit the estimation of the extreme value index for randomly censored data from a heavy tailed distribution. We introduce a new class of estimators which encompasses earlier proposals given in Worms and Worms (2014) and Beirlant et al.…

Statistics Theory · Mathematics 2018-04-19 Jan Beirlant , Julien Worms , Rym Worms

On the basis of Nelson-Aalen product-limit estimator of a randomly censored distribution function, we introduce a kernel estimator to the tail index of right-censored Pareto-like data. Under some regularity assumptions, the consistency and…

Statistics Theory · Mathematics 2025-06-24 Nour Elhouda Guesmia , Abdelhakim Necir , Djamel Meraghni

Recently, the concept of tail dependence has been discussed in financial applications related to market or credit risk. The multivariate extreme value theory is a proper tool to measure and model dependence, for example, of large loss…

Applications · Statistics 2011-09-27 Marta Ferreira

At high levels, the asymptotic distribution of a stationary, regularly varying Markov chain is conveniently given by its tail process. The latter takes the form of a geometric random walk, the increment distribution depending on the sign of…

Methodology · Statistics 2014-12-11 Holger Drees , Johan Segers , Michał Warchoł

Most extreme events in real life can be faithfully modeled as random realizations from a Generalized Pareto distribution, which depends on two parameters: the scale and the shape. In many actual situations, one is mostly concerned with the…

Statistics Theory · Mathematics 2016-06-30 Paul Rochet , Isabel Serra

We study tail estimation in Pareto-like settings for datasets with a high percentage of randomly right-censored data, and where some expert information on the tail index is available for the censored observations. This setting arises for…

Applications · Statistics 2019-11-13 Martin Bladt , Hansjoerg Albrecher , Jan Beirlant

In extreme value analysis, the extreme value index plays a vital role as it determines the tail heaviness of the underlying distribution and is the primary parameter required for the estimation of other extreme events. In this paper, we…

Computation · Statistics 2017-09-27 Richard Minkah , Tertius de Wet , Ezekiel Nii Noi Nortey

We consider two independent random variables with the given tail asymptotic (e.g. power or exponential). We find tail asymptotic for their sum and product. This is done by some cumbersome but purely technical computations and requires the…

Probability · Mathematics 2013-05-09 Andrey Sarantsev