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The accuracy of least squares calibration using option premiums and particle filtering of price data to find model parameters is determined. Derivative models using exponential L\'evy processes are calibrated using regularized weighted…

Pricing of Securities · Quantitative Finance 2017-05-16 Stavros J. Sioutis

We discuss local linear smooth backfitting for additive non-parametric models. This procedure is well known for achieving optimal convergence rates under appropriate smoothness conditions. In particular, it allows for the estimation of each…

Statistics Theory · Mathematics 2022-01-27 Munir Hiabu , Enno Mammen , Joseph T. Meyer

We consider nonparametric statistical inference for L\'evy processes sampled irregularly, at low frequency. The estimation of the jump dynamics as well as the estimation of the distributional density are investigated. Non-asymptotic risk…

Statistics Theory · Mathematics 2015-11-23 Johanna Kappus

This paper considers a proportional hazards model, which allows one to examine the extent to which covariates interact nonlinearly with an exposure variable, for analysis of lifetime data. A local partial-likelihood technique is proposed to…

Statistics Theory · Mathematics 2007-06-13 Jianqing Fan , Huazhen Lin , Yong Zhou

The minimality of the penalization function associated with a convex risk measure is analyzed in this paper. First, in a general static framework, we provide necessary and sufficient conditions for a penalty function defined in a convex and…

Probability · Mathematics 2014-01-31 Daniel Hernández-Hernández , Leonel Pérez-Hernández

We propose a general theorem providing upper bounds for the risk of an empirical risk minimizer (ERM).We essentially focus on the binary classification framework. We extend Tsybakov's analysis of the risk of an ERM under margin type…

Statistics Theory · Mathematics 2016-08-14 Pascal Massart , Élodie Nédélec

This paper proposes a versatile covariate adjustment method that directly incorporates covariate balance in regression discontinuity (RD) designs. The new empirical entropy balancing method reweights the standard local polynomial RD…

Econometrics · Economics 2024-05-29 Jun Ma , Zhengfei Yu

In this article we propose a locally adaptive strategy for estimating a function from its Exponential Radon Transform (ERT) data, without prior knowledge of the smoothness of functions that are to be estimated. We build a non-parametric…

Statistics Theory · Mathematics 2020-11-16 Anuj Abhishek , Sakshi Arya

In this paper, we investigate a portfolio investment problem under volatility uncertainty and short-sale constraints market via sublinear expectation which is used to model volatility uncertainty. We assume the stocks admit volatility…

Mathematical Finance · Quantitative Finance 2026-05-05 Jing He , Shuzhen Yang

In the first part of this paper, we show that the small-ball condition, recently introduced by Mendelson (2015), may behave poorly for important classes of localized functions such as wavelets, piecewise polynomials or trigonometric…

Statistics Theory · Mathematics 2016-10-19 Adrien Saumard

We consider the problem of optimal hedging in an incomplete market with an established pricing kernel. In such a market, prices are uniquely determined, but perfect hedges are usually not available. We work in the rather general setting of…

Mathematical Finance · Quantitative Finance 2020-09-02 George Bouzianis , Lane P. Hughston

In this paper we investigate the hedging problem of a unit-linked life insurance contract via the local risk-minimization approach, when the insurer has a restricted information on the market. In particular, we consider an endowment…

Mathematical Finance · Quantitative Finance 2017-09-26 Claudia Ceci , Katia Colaneri , Alessandra Cretarola

During the last decade Levy processes with jumps have received increasing popularity for modelling market behaviour for both derviative pricing and risk management purposes. Chan et al. (2009) introduced the use of empirical likelihood…

Methodology · Statistics 2012-01-16 Steven Kou , Tony Sit , Zhiliang Ying

The Robbins-Monro algorithm is a recursive, simulation-based stochastic procedure to approximate the zeros of a function that can be written as an expectation. It is known that under some technical assumptions, Gaussian limit distributions…

Probability · Mathematics 2025-10-22 Valentin Konakov , Enno Mammen , Lorick Huang

A cylindrical Levy process does not enjoy a cylindrical version of the semi-martingale decomposition which results in the need to develop a completely novel approach to stochastic integration. In this work, we introduce a stochastic…

Probability · Mathematics 2016-08-25 Adam Jakubowski , Markus Riedle

We consider rather general structural equation models (SEMs) between a target and its covariates in several shifted environments. Given $k\in\mathbb{N}$ shifts we consider the set of shifts that are at most $\gamma$-times as strong as a…

Statistics Theory · Mathematics 2024-07-31 Philip Kennerberg , Ernst C. Wit

A local projection model is defined by a set of linear regressions that account for the associations between exogenous variables and an endogenous variable observed at different time points. While it is standard practice to separately…

Methodology · Statistics 2020-07-14 Masahiro Tanaka

In this article, the problem of semi-parametric inference on the parameters of a multidimensional L\'{e}vy process $L_t$ with independent components based on the low-frequency observations of the corresponding time-changed L\'{e}vy process…

Methodology · Statistics 2012-01-31 Denis Belomestny

A nonparametric procedure for robust regression estimation and for quantile regression is proposed which is completely data-driven and adapts locally to the regularity of the regression function. This is achieved by considering in each…

Statistics Theory · Mathematics 2009-04-06 Markus Reiss , Yves Rozenholc , Charles-Andre Cuenod

We propose a novel strategy for multivariate extreme value index estimation. In applications such as finance, volatility and risk present in the components of a multivariate time series are often driven by the same underlying factors, such…

Statistics Theory · Mathematics 2020-03-24 Joni Virta , Niko Lietzén , Lauri Viitasaari , Pauliina Ilmonen