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We present general results on the univariate tail conditional expectation (TCE) and multivariate tail conditional expectation for location-scale mixture of elliptical distributions. Examples include the location-scale mixture of normal…

Statistics Theory · Mathematics 2020-07-21 Baishuai Zuo , Chuancun Yin

This paper contributes to answering a question that is of crucial importance in risk management and extreme value theory: How to select the threshold above which one assumes that the tail of a distribution follows a generalized Pareto…

Methodology · Statistics 2020-01-27 Ingo Hoffmann , Christoph J. Börner

The conditional tail average treatment effect (CTATE) is defined as a difference between the conditional tail expectations of potential outcomes, which can capture heterogeneity and deliver aggregated local information on treatment effects…

Applications · Statistics 2024-05-21 Le-Yu Chen , Yu-Min Yen

Recently defined expectile regions capture the idea of centrality with respect to a multivariate distribution, but fail to describe the tail behavior while it is not at all clear what should be understood by a tail of a multivariate…

Statistics Theory · Mathematics 2023-12-18 Ha Thi Khanh Linh , Andreas H Hamel

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

This paper considers the specification of covariance structures with tail estimates. We focus on two aspects: (i) the estimation of the VaR-CoVaR risk matrix in the case of larger number of time series observations than assets in a…

Econometrics · Economics 2023-07-25 Christis Katsouris

Motivated by a bidimensional discrete-time risk model in insurance, we study the second-order asymptotics for two kinds of tail probabilities of the stochastic discounted value of aggregate net losses including two business lines. These are…

Probability · Mathematics 2025-01-22 Bingzhen Geng , Yang Liu , Shijie Wang

This paper introduces ergodic-risk criteria, which capture long-term cumulative risks associated with controlled Markov chains through probabilistic limit theorems--in contrast to existing methods that require assumptions of either finite…

Optimization and Control · Mathematics 2025-12-03 Shahriar Talebi , Na Li

In this paper non-asymptotic exponential and moment estimates are derived for tail of distribution for discrete time martingale under norming sequence 1/n, as in the classical Law of Large Numbers (LLN), by means of martingale differences…

Probability · Mathematics 2012-07-10 E. Ostrovsky , L. Sirota

The spectral measure plays a key role in the statistical modeling of multivariate extremes. Estimation of the spectral measure is a complex issue, given the need to obey a certain moment condition. We propose a Euclidean likelihood-based…

Methodology · Statistics 2012-04-17 Miguel de Carvalho , Boris Oumow , Johan Segers , Michał Warchoł

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

The estimation of the extremal dependence structure is spoiled by the impact of the bias, which increases with the number of observations used for the estimation. Already known in the univariate setting, the bias correction procedure is…

Statistics Theory · Mathematics 2015-04-03 Anne-Laure Fougères , Laurens de Haan , Cécile Mercadier

Capital allocation is a procedure used to assess the risk contributions of individual risk components to the total risk of a portfolio. While the conditional tail expectation (CTE)-based capital allocation is arguably the most popular…

Portfolio Management · Quantitative Finance 2026-01-05 Enrique Calderín-Ojeda , Yuyu Chen , Soon Wei Tan

Motivated by the need to analyze continuously updated data sets in the context of time-to-event modeling, we propose a novel nonparametric approach to estimate the conditional hazard function given a set of continuous and discrete…

Methodology · Statistics 2025-07-03 Daphné Aurouet , Valentin Patilea

A new model framework called Realized Conditional Autoregressive Expectile (Realized-CARE) is proposed, through incorporating a measurement equation into the conventional CARE model, in a manner analogous to the Realized-GARCH model.…

Risk Management · Quantitative Finance 2016-12-28 Richard Gerlach , Chao Wang

We establish a statistical learning theoretical framework aimed at extrapolation, or out-of-domain generalization, on the unobserved tails of covariates in continuous regression problems. Our strategy involves performing statistical…

Machine Learning · Statistics 2025-09-15 Stephan Clémençon , Nathan Huet , Anne Sabourin

Multivariate regular variation plays a role assessing tail risk in diverse applications such as finance, telecommunications, insurance and environmental science. The classical theory, being based on an asymptotic model, sometimes leads to…

Probability · Mathematics 2011-08-31 Bikramjit Das , Abhimanyu Mitra , Sidney Resnick

We introduce a new type of estimator for the spectral tail process of a regularly varying time series. The approach is based on a characterizing invariance property of the spectral tail process, which is incorporated into the new estimator…

Statistics Theory · Mathematics 2021-03-16 Holger Drees , Anja Janßen , Sebastian Neblung

The processes of the averaged regression quantiles and of their modifications provide useful tools in the regression models when the covariates are not fully under our control. As an application we mention the probabilistic risk assessment…

Statistics Theory · Mathematics 2017-10-19 Jana Jurečková , Martin Schindler , Jan Picek

We analyze systems of agents sharing light-tailed risky claims issued by different financial objects. Assuming exponentially distributed claims, we obtain that both agents' and system's losses follow generalized exponential mixture…

Risk Management · Quantitative Finance 2016-12-22 Claudia Klüppelberg , Miriam Isabel Seifert
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