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This paper presents a novel semiparametric method to study the effects of extreme events on binary outcomes and subsequently forecast future outcomes. Our approach, based on Bayes' theorem and regularly varying (RV) functions, facilitates a…

Econometrics · Economics 2025-02-25 Laura Liu , Yulong Wang

This paper presents two results concerning uniform confidence intervals for the tail index and the extreme quantile. First, we show that it is impossible to construct a length-optimal confidence interval satisfying the correct uniform…

Statistics Theory · Mathematics 2022-10-25 Yuya Sasaki , Yulong Wang

Modeling and predicting extreme movements in GDP is notoriously difficult and the selection of appropriate covariates and/or possible forms of nonlinearities are key in obtaining precise forecasts. In this paper, our focus is on using large…

Econometrics · Economics 2023-09-25 Jan Prüser , Florian Huber

Asymptotic theory of tail index estimation has been studied extensively in the frequentist literature on extreme values, but rarely in the Bayesian context. We investigate whether popular Bayesian kernel mixture models are able to support…

Statistics Theory · Mathematics 2018-04-19 Cheng Li , Lizhen Lin , David B. Dunson

Estimating the tail index parameter is one of the primal objectives in extreme value theory. For heavy-tailed distributions the Hill estimator is the most popular way to estimate the tail index parameter. Improving the Hill estimator was…

Methodology · Statistics 2018-06-05 László Németh , András Zempléni

Statistical modeling of high dimensional extremes remains challenging and has generally been limited to moderate dimensions. Understanding structural relationships among variables at their extreme levels is crucial both for constructing…

Methodology · Statistics 2026-01-01 Mihyun Kim , Jeongjin Lee

This paper studies extremal quantiles under two-way clustered dependence. We show that the limiting distribution of unconditional intermediate-order tail quantiles is Gaussian. This result is notable because two-way clustering typically…

Statistics Theory · Mathematics 2026-01-19 Harold D. Chiang , Ryutah Kato , Yuya Sasaki

A central issue in the theory of extreme values focuses on suitable conditions such that the well-known results for the limiting distributions of the maximum of i.i.d. sequences can be applied to stationary ones. In this context, the…

Statistics Theory · Mathematics 2017-02-07 Helena Ferreira , Marta Ferreira

Extreme values and the tail behavior of probability distributions are essential for quantifying and mitigating risk in complex systems of all kinds. In multivariate settings, accounting for correlations is crucial. Although extreme value…

Statistical Finance · Quantitative Finance 2026-03-06 Benjamin Köhler , Anton J. Heckens , Thomas Guhr

Extreme quantile treatment effects (eQTEs) measure the causal impact of a treatment on the tails of an outcome distribution and are central for studying rare, high-impact events. Standard QTE methods often fail in extreme regimes due to…

Methodology · Statistics 2026-03-25 Mengran Li , Daniela Castro-Camilo

The study of loss function distributions is critical to characterize a model's behaviour on a given machine learning problem. For example, while the quality of a model is commonly determined by the average loss assessed on a testing set,…

Machine Learning · Computer Science 2023-06-06 Etrit Haxholli , Marco Lorenzi

Causal questions are omnipresent in many scientific problems. While much progress has been made in the analysis of causal relationships between random variables, these methods are not well suited if the causal mechanisms only manifest…

Methodology · Statistics 2020-09-23 Nicola Gnecco , Nicolai Meinshausen , Jonas Peters , Sebastian Engelke

We consider the problem of supervised dimension reduction with a particular focus on extreme values of the target $Y\in\mathbb{R}$ to be explained by a covariate vector $X \in \mathbb{R}^p$. The general purpose is to define and estimate a…

Statistics Theory · Mathematics 2023-02-27 Anass Aghbalou , François Portier , Anne Sabourin , Chen Zhou

In extreme value inference it is a fundamental problem how the target value is required to be extreme by the extreme value theory. In iid settings this study both theoretically and numerically compares tail estimators, which are based on…

Statistics Theory · Mathematics 2024-09-04 Taku Moriyama

Inference over tails is usually performed by fitting an appropriate limiting distribution over observations that exceed a fixed threshold. However, the choice of such threshold is critical and can affect the inferential results. Extreme…

Statistical Finance · Quantitative Finance 2019-02-26 Chiara Lattanzi , Manuele Leonelli

We develop a new extreme value theory for repeated cross-sectional and panel data to construct asymptotically valid confidence intervals (CIs) for conditional extremal quantiles from a fixed number $k$ of nearest-neighbor tail observations.…

Econometrics · Economics 2020-07-21 Yuya Sasaki , Yulong Wang

We revisit the model of heteroscedastic extremes initially introduced by Einmahl et al. (JRSSB, 2016) to describe the evolution of a non stationary sequence whose extremes evolve over time and adapt it into a general extreme quantile…

Statistics Theory · Mathematics 2020-02-06 Benjamin Bobbia , Clément Dombry , Davit Varron

Let $\{X_t, t \geq 1\}$ be a sequence of identically distributed and pairwise asymptotically independent random variables with regularly varying tails and $\{ \Theta_t, t\geq1 \}$ be a sequence of positive random variables independent of…

Probability · Mathematics 2017-09-05 Rajat Subhra Hazra , Krishanu Maulik

Extremile regression, as a least squares analog of quantile regression, is potentially useful tool for modeling and understanding the extreme tails of a distribution. However, existing extremile regression methods, as nonparametric…

Methodology · Statistics 2025-07-03 Rong Jiang , Keming Yu , Jiangfeng Wang

Causal inference for extreme events has many potential applications in fields such as climate science, medicine and economics. We study the extremal quantile treatment effect of a binary treatment on a continuous, heavy-tailed outcome.…

Methodology · Statistics 2023-07-06 David Deuber , Jinzhou Li , Sebastian Engelke , Marloes H. Maathuis