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This paper investigates a financial market where returns depend on an unobservable Gaussian drift process. While the observation of returns yields information about the underlying drift, we also incorporate discrete-time expert opinions as…

Portfolio Management · Quantitative Finance 2021-11-04 Jörn Sass , Dorothee Westphal , Ralf Wunderlich

This paper presents the solution to a European option pricing problem by considering a regime-switching jump diffusion model of the underlying financial asset price dynamics. The regimes are assumed to be the results of an observed pure…

Pricing of Securities · Quantitative Finance 2019-10-21 Anindya Goswami , Omkar Manjarekar , Anjana R

An anisotropic random barrier model is presented, in which the transition probabilities in different directions have different probability density functions. At low temperatures, the anisotropic long--time diffusion coefficients, obtained…

Disordered Systems and Neural Networks · Physics 2009-11-10 Sebastian Bustingorry

We consider the problem of the estimation of the invariant distribution function of an ergodic diffusion process when the drift coefficient is unknown. The empirical distribution function is a natural estimator which is unbiased, uniformly…

Statistics Theory · Mathematics 2007-06-13 Ilia Negri

Predicting protein functional characteristics from structure remains a central problem in protein science, with broad implications from understanding the mechanisms of disease to designing novel therapeutics. Unfortunately, current machine…

Biological Physics · Physics 2024-09-30 Kevin Borisiak , Gian Marco Visani , Armita Nourmohammad

We consider a real-valued diffusion process with a linear jump term driven by a Poisson point process and we assume that the jump amplitudes have a centered density with finite moments. We show upper and lower estimates for the density of…

Probability · Mathematics 2021-04-27 Arturo Kohatsu-Higa , Eulalia Nualart , Ngoc Khue Tran

We propose a robust variable selection procedure using a divergence based M-estimator combined with a penalty function. It produces robust estimates of the regression parameters and simultaneously selects the important explanatory…

Methodology · Statistics 2020-01-01 Abhijit Mandal , Samiran Ghosh

A popular model selection approach for generalized linear mixed-effects models is the Akaike information criterion, or AIC. Among others, \cite{vaida05} pointed out the distinction between the marginal and conditional inference depending on…

Methodology · Statistics 2008-10-14 Heng Lian

For a class of time inhomogenous distribution dependent birth-death processes, we derive the well-posedness, $\mathbb{W}_p$-estimate, exponential ergodicity, and uniform in time propagation of chaos. These extend the corresponding results…

Probability · Mathematics 2025-12-30 Feng-Yu Wang , Yi Zhao

We review the Akaike, deviance, and Watanabe-Akaike information criteria from a Bayesian perspective, where the goal is to estimate expected out-of-sample-prediction error using a biascorrected adjustment of within-sample error. We focus on…

Methodology · Statistics 2013-07-24 Andrew Gelman , Jessica Hwang , Aki Vehtari

We consider structural equation modeling (SEM) with latent variables for diffusion processes based on high-frequency data. We derive the quasi-likelihood estimators for parameters in the SEM. The goodness-of-fit test based on the…

Statistics Theory · Mathematics 2022-10-24 Shogo Kusano , Masayuki Uchida

We propose a new statistical observation scheme of diffusion processes named convolutional observation, where it is possible to deal with smoother observation than ordinary diffusion processes by considering convolution of diffusion…

Statistics Theory · Mathematics 2020-10-28 Shogo H Nakakita , Masayuki Uchida

In this paper, we are presenting a method for estimation of market parameters modeled by jump diffusion process. The method proposed is based on Gibbs sampler, while the market parameters are the drift, the volatility, the jump intensity…

Pricing of Securities · Quantitative Finance 2017-12-22 Kein Joe Lau , Yong Kheng Goh , An-Chow Lai

We provide a class of diffusion processes for continuous time-varying multivariate angular data with explicit transition probability densities, enabling exact likelihood inference. The presented diffusions are time-reversible and can be…

Methodology · Statistics 2024-09-05 Eduardo García-Portugués , Michael Sørensen

This article concerns the estimation of hitting time statistics for potentially non-stationary processes. The main focus is exceedance times of environmental processes. To this end we consider an empirical estimator based on ergodic theory…

Statistics Theory · Mathematics 2024-06-18 Åsmund Hausken Sande

In this paper, we introduce a new method of sampling from transition densities of diffusion processes including those unknown in closed forms by solving a partial differential equation satisfied by the quotient of transition densities. We…

Probability · Mathematics 2020-12-04 Yasin Kikabi , Juma Kasozi

We consider two problems of constructing of goodness of fit tests for ergodic diffusion processes. The first one is concerned with a composite basic hypothesis for a parametric class of diffusion processes, which includes the…

Statistics Theory · Mathematics 2013-02-06 Yury A. Kutoyants

Network diffusion models are applicable to many socioeconomic interactions, yet network interaction is hard to observe or measure. Whenever the diffusion process is unobserved, the number of possible realizations of the latent matrix that…

Econometrics · Economics 2023-09-06 L. S. Sanna Stephan

We present a modelling approach for diffusion in a complex medium characterized by a random length scale. The resulting stochastic process shows subdiffusion with a behavior in qualitative agreement with single particle tracking experiments…

Statistical Mechanics · Physics 2016-12-14 Daniel Molina-García , Tuan Minh Pham , Paolo Paradisi , Carlo Manzo , Gianni Pagnini

Claeskens and Hjort (2003) constructed the focused information criterion (FIC) and developed frequentist model averaging methods using maximum likelihood estimators assuming the observations to be independent and identically distributed.…

Statistics Theory · Mathematics 2018-07-24 S. C. Pandhare , T. V. Ramanathan
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