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The generalised extreme value (GEV) distribution is a three parameter family that describes the asymptotic behaviour of properly renormalised maxima of a sequence of independent and identically distributed random variables. If the shape…

Applications · Statistics 2022-05-10 Daniela Castro-Camilo , Raphaël Huser , Håvard Rue

This article extends the multivariate extreme value theory (MEVT) to discrete settings, focusing on the generalized Pareto distribution (GPD) as a foundational tool. The purpose of the study is to enhance the understanding of extreme…

Methodology · Statistics 2025-06-25 Samira Aka , Marie Kratz , Philippe Naveau

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 potential solution to combat the scarcity of tail observations in extreme value analysis is to integrate information from multiple datasets sharing similar tail properties, for instance, a common extreme value index. In other words, for…

Methodology · Statistics 2025-06-25 Liujun Chen , Marco Oesting , Chen Zhou

In many applied fields, the prediction of more severe events than those already recorded is crucial for safeguarding against potential future calamities. What-if analyses, which evaluate hypothetical scenarios up to the worst-case event,…

Methodology · Statistics 2025-04-08 Simone A. Padoan , Stefano Rizzelli

Models for extreme values are generally derived from limit results, which are meant to be good enough approximations when applied to finite samples. Depending on the speed of convergence of the process underlying the data, these…

Statistics Theory · Mathematics 2019-02-20 Thomas Lugrin , Anthony C. Davison , Jonathan A. Tawn

This paper introduces the multivariate tail-inflated normal (MTIN) distribution, an elliptical heavy-tails generalization of the multivariate normal (MN). The MTIN belongs to the family of MN scale mixtures by choosing a convenient…

Methodology · Statistics 2020-06-23 Antonio Punzo , Luca Bagnato

When assessing the impact of extreme events, it is often not just a single component, but the combined behaviour of several components which is important. Statistical modelling using multivariate generalized Pareto (GP) distributions…

Methodology · Statistics 2018-02-07 Anna Kiriliouk , Holger Rootzén , Johan Segers , Jennifer L. Wadsworth

The statistical modeling of discrete extremes has received less attention than their continuous counterparts in the Extreme Value Theory (EVT) literature. One approach to the transition from continuous to discrete extremes is the modeling…

Methodology · Statistics 2024-06-18 Touqeer Ahmad , Carlo Gaetan , Philippe Naveau

Models for extreme values accommodating non-stationarity have been amply studied and evaluated from a parametric perspective. Whilst these models are flexible, in the sense that many parametrizations can be explored, they assume an…

Applications · Statistics 2022-02-16 Evandro Konzen , Claudia Neves , Philip Jonathan

The Multivariate Extreme Value distributions have shown their usefulness in environmental studies, financial and insurance mathematics. The Logistic or Gumbel-Hougaard distribution is one of the oldest multivariate extreme value models and…

Probability · Mathematics 2011-04-29 Helena Ferreira , Luísa Pereira

Modelling multivariate tail dependence is one of the key challenges in extreme-value theory. Multivariate extremes are usually characterized using parametric models, some of which have simpler submodels at the boundary of their parameter…

Methodology · Statistics 2018-12-17 Anna Kiriliouk

The Generalized Pareto Distribution (GPD) plays a central role in modelling heavy tail phenomena in many applications. Applying the GPD to actual datasets however is a non-trivial task. One common way suggested in the literature to…

Statistics Theory · Mathematics 2017-08-08 Se Yoon Lee , Joseph H. T. Kim

The skew-normal and related families are flexible and asymmetric parametric models suitable for modelling a diverse range of systems. We show that the multivariate maximum of a high-dimensional extended skew-normal random sample has…

Methodology · Statistics 2018-10-02 Boris Beranger , Simone A. Padoan , Yangfan Xu , Scott A. Sisson

Estimating the probability of extreme events involving multiple risk factors is a critical challenge in fields such as finance and climate science. This paper proposes a semi-parametric approach to estimate the probability that a…

Methodology · Statistics 2024-12-31 Anna Kiriliouk , Chen Zhou

Insurance products frequently cover significant claims arising from a variety of sources. To model losses from these products accurately, actuarial models must account for high-severity claims. A widely used strategy is to apply a mixture…

Methodology · Statistics 2025-04-30 Sébastien Jessup , Mélina Mailhot , Mathieu Pigeon

Bias reduction in tail estimation has received considerable interest in extreme value analysis. Estimation methods that minimize the bias while keeping the mean squared error (MSE) under control, are especially useful when applying…

Statistics Theory · Mathematics 2016-06-21 Gaonyalelwe Maribe , Andréhette Verster , Jan Beirlant

We develop an econometric framework integrating heavy-tailed Student's $t$ distributions with behavioral probability weighting while preserving infinite divisibility. Using 432{,}752 observations across 86 assets (2004--2024), we…

Mathematical Finance · Quantitative Finance 2025-11-21 Akash Deep , Svetlozar T. Rachev , Frank J. Fabozzi

The classical approach to multivariate extreme value modelling assumes that the joint distribution belongs to a multivariate domain of attraction. This requires each marginal distribution be individually attracted to a univariate extreme…

Statistics Theory · Mathematics 2012-10-12 Sidney Resnick , David Zeber

Statistical modeling of multivariate and spatial extreme events has attracted broad attention in various areas of science. Max-stable distributions and processes are the natural class of models for this purpose, and many parametric families…

Methodology · Statistics 2017-08-09 Clement Dombry , Sebastian Engelke , Marco Oesting
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