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We introduce a trimmed version of the Hill estimator for the index of a heavy-tailed distribution, which is robust to perturbations in the extreme order statistics. In the ideal Pareto setting, the estimator is essentially finite-sample…

Methodology · Statistics 2018-08-24 Shrijita Bhattacharya , Michael Kallitsis , Stilian Stoev

In this paper, we introduce reduced-bias estimators for the estimation of the tail index of a Pareto-type distribution. This is achieved through the use of a regularised weighted least squares with an exponential regression model for…

Methodology · Statistics 2022-04-19 E. Ocran , R. Minkah , G. Kallah-Dagadu , K. Doku-Amponsah

The extremal index $\theta$, a measure of the degree of local dependence in the extremes of a stationary process, plays an important role in extreme value analyses. We estimate $\theta$ semiparametrically, using the relationship between the…

Methodology · Statistics 2016-06-02 Paul J. Northrop

Existing theory for multivariate extreme values focuses upon characterizations of the distributional tails when all components of a random vector, standardized to identical margins, grow at the same rate. In this paper, we consider the…

Statistics Theory · Mathematics 2013-12-20 J. L. Wadsworth , J. A. Tawn

A wide range of natural and social phenomena result in observables whose distributions can be well approximated by a power-law decay. The well-known Hill estimator of the tail exponent provides results which are in many respects superior to…

Data Analysis, Statistics and Probability · Physics 2009-05-20 Éva Rácz , János Kertész , Zoltán Eisler

At high levels, the asymptotic distribution of a stationary, regularly varying Markov chain is conveniently given by its tail process. The latter takes the form of a geometric random walk, the increment distribution depending on the sign of…

Methodology · Statistics 2014-12-11 Holger Drees , Johan Segers , Michał Warchoł

The extreme value theory is very popular in applied sciences including Finance, economics, hydrology and many other disciplines. In univariate extreme value theory, we model the data by a suitable distribution from the general max-domain of…

Methodology · Statistics 2019-05-09 Abhik Ghosh

The dominant approaches to text representation in natural language rely on learning embeddings on massive corpora which have convenient properties such as compositionality and distance preservation. In this paper, we develop a novel method…

The problem of estimating the coefficient of bivariate tail dependence is considered here from the robustness point of view; it combines two apparently contradictory theories of robust statistics and extreme value statistics. The usual…

Applications · Statistics 2014-07-08 Abhik Ghosh

The block maxima method is one of the most popular approaches for extreme value analysis with independent and identically distributed observations in the domain of attraction of an extreme value distribution. The lack of a rigorous study on…

Methodology · Statistics 2022-04-12 Simone A Padoan , Stefano Rizzelli

Recently, the concept of tail dependence has been discussed in financial applications related to market or credit risk. The multivariate extreme value theory is a proper tool to measure and model dependence, for example, of large loss…

Applications · Statistics 2011-09-27 Marta Ferreira

We consider heavy-tailed distributions and compare the well-known estimators of the tail index, based on extreme value theory with a comparatively recent estimator based on a different idea.

Probability · Mathematics 2016-08-14 Vygantas Paulauskas , Marijus Vaičiulis

We propose a semiparametric method for fitting the tail of a heavy-tailed population given a relatively small sample from that population and a larger sample from a related background population. We model the tail of the small sample as an…

Methodology · Statistics 2014-10-21 William Fithian , Stefan Wager

This paper introduces a flexible framework for the estimation of the conditional tail index of heavy tailed distributions. In this framework, the tail index is computed from an auxiliary linear regression model that facilitates estimation…

Econometrics · Economics 2024-09-23 João Nicolau , Paulo M. M. Rodrigues

Big data can easily be contaminated by outliers or contain variables with heavy-tailed distributions, which makes many conventional methods inadequate. To address this challenge, we propose the adaptive Huber regression for robust…

Statistics Theory · Mathematics 2018-10-11 Qiang Sun , Wenxin Zhou , Jianqing Fan

We consider the fitting of heavy tailed data and distribution with a special attention to distributions with a non--standard shape in the "body" of the distribution. To this end we consider a dense class of heavy tailed distributions…

Statistics Theory · Mathematics 2017-05-15 Mogens Bladt , Leonardo Rojas-Nandayapa

To achieve a greater general flexibility for modeling heavy-tailed bounded responses, a beta scale mixture model is proposed. Each member of the family is obtained by multiplying the scale parameter of the conditional beta distribution by a…

Methodology · Statistics 2026-02-11 Arno Otto , Andriëtte Bekker , Johan Ferreira , Lebogang Rathebe

We consider the problem of estimating the tail index $\alpha$ of a distribution satisfying a $(\alpha, \beta)$ second-order Pareto-type condition, where \beta is the second-order coefficient. When $\beta$ is available, it was previously…

Statistics Theory · Mathematics 2014-07-07 Alexandra Carpentier , Arlene K. H. Kim

Heavy tailed phenomena are naturally analyzed by extreme value statistics. A crucial step in such an analysis is the estimation of the extreme value index, which describes the tail heaviness of the underlying probability distribution. We…

Statistics Theory · Mathematics 2018-07-18 Hanan Ahmed , John H. J. Einmahl

Both parametric distribution functions appearing in extreme value theory - the generalized extreme value distribution and the generalized Pareto distribution - have log-concave densities if the extreme value index gamma is in [-1,0].…

Statistics Theory · Mathematics 2023-04-17 Samuel Müller , Kaspar Rufibach