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Analysing dependent risks is an important task for insurance companies. A dependency is reflected in the fact that information about one random variable provides information about the likely distribution of values of another random…

Applications · Statistics 2021-03-22 Sen Hu , Adrian O'Hagan

While there is substantial need for dependence models in higher dimensions, most existing models quickly become rather restrictive and barely balance parsimony and flexibility. Hierarchical constructions may improve on that by grouping…

Methodology · Statistics 2013-10-11 Eike Christian Brechmann

Latent autoregressive processes are a popular choice to model time varying parameters. These models can be formulated as nonlinear state space models for which inference is not straightforward due to the high number of parameters. Therefore…

Computation · Statistics 2019-11-01 Alexander Kreuzer , Claudia Czado

We propose a new copula model that can be used with replicated spatial data. Unlike the multivariate normal copula, the proposed copula is based on the assumption that a common factor exists and affects the joint dependence of all…

Applications · Statistics 2016-12-08 Pavel Krupskii , Raphael Huser , Marc G. Genton

In recent years, conditional copulas, that allow dependence between variables to vary according to the values of one or more covariates, have attracted increasing attention. In high dimension, vine copulas offer greater flexibility compared…

Methodology · Statistics 2021-09-24 Rosario Barone , Luciana Dalla Valle

This article proposes a space-efficient approximation to empirical tail dependence coefficients of an indefinite bivariate stream of data. The approximation, which has stream-length invariant error bounds, utilises recent work on the…

Computation · Statistics 2019-09-17 Alastair Gregory , Kaushik Jana

Copula models have become one of the most widely used tools in the applied modelling of multivariate data. Similarly, Bayesian methods are increasingly used to obtain efficient likelihood-based inference. However, to date, there has been…

Methodology · Statistics 2015-10-13 Michael Stanley Smith

In situations where both extreme and non-extreme data are of interest, modelling the whole data set accurately is important. In a univariate framework, modelling the bulk and tail of a distribution has been extensively studied before.…

Methodology · Statistics 2023-10-11 Lídia M. André , Jennifer L. Wadsworth , Adrian O'Hagan

Motivated by recently investigated results on dependence measures and robust risk models, this paper provides an overview of dependence properties of many well-known bivariate copula families, where the focus is on the Schur order for…

Statistics Theory · Mathematics 2024-04-09 Jonathan Ansari , Marcus Rockel

We utilize copulas to constitute a unified framework for constructing and optimizing variational proposals in hierarchical Bayesian models. For models with continuous and non-Gaussian hidden variables, we propose a semiparametric and…

Machine Learning · Statistics 2016-05-19 Shaobo Han , Xuejun Liao , David B. Dunson , Lawrence Carin

A new class of bivariate distributions is introduced that extends the Generalized Marshall-Olkin distributions of Li and Pellerey (2011). Their dependence structure is studied through the analysis of the copula functions that they induce.…

Mathematical Finance · Quantitative Finance 2017-02-13 Sabrina Mulinacci

We introduce a family of copulas which are locally piecewise uniform in the interior of the unit cube of any given dimension. Within that family, the simultaneous control of tail dependencies of all projections to faces of the cube is…

Computational Finance · Quantitative Finance 2009-08-11 Christoph Hummel

Vine copulas are a type of multivariate dependence model, composed of a collection of bivariate copulas that are combined according to a specific underlying graphical structure. Their flexibility and practicality in moderate and high…

Statistics Theory · Mathematics 2022-07-19 Emma S. Simpson , Jennifer L. Wadsworth , Jonathan A. Tawn

Correlation mixtures of elliptical copulas arise when the correlation parameter is driven itself by a latent random process. For such copulas, both penultimate and asymptotic tail dependence are much larger than for ordinary elliptical…

Statistics Theory · Mathematics 2009-12-21 Hans Manner , Johan Segers

A new class of copulas, termed the MGL copula class, is introduced. The new copula originates from extracting the dependence function of the multivariate generalized log-Moyal-gamma distribution whose marginals follow the univariate…

Methodology · Statistics 2021-08-23 Zhengxiao Li , Jan Beirlant , Liang Yang

Probability density estimation is a central task in statistics. Copula-based models provide a great deal of flexibility in modelling multivariate distributions, allowing for the specifications of models for the marginal distributions…

Methodology · Statistics 2024-05-08 Nicolás Kuschinski , Richard Warr , Alejandro Jara

The concept of asymmetric copulas is revisited and is made more precise. We give a rigorous topological argument for opportunity to define asymmetry measures defined recently by K.F Siburg [6] through exhibiting at least three ordered…

Probability · Mathematics 2019-07-16 Ahmed Sani , Loubna Karbil

Copulas are popular as models for multivariate dependence because they allow the marginal densities and the joint dependence to be modeled separately. However, they usually require that the transformation from uniform marginals to the…

Methodology · Statistics 2013-06-14 Minh-Ngoc Tran , Paolo Giordani , Xiuyan Mun , Robert Kohn , Mike Pitt

We propose a new semi-parametric distributional regression smoother that is based on a copula decomposition of the joint distribution of the vector of response values. The copula is high-dimensional and constructed by inversion of a pseudo…

Methodology · Statistics 2020-06-30 Michael Stanley Smith , Nadja Klein

Prior elicitation methods for Bayesian analyses transfigure prior information into quantifiable prior distributions. Recently, methods that leverage copulas have been proposed to accommodate more flexible dependence structures when…

Methodology · Statistics 2024-11-22 Luke Hagar , Nathaniel T. Stevens