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Stationary-Increment Variance-Gamma and "t" Models: Simulation and Parameter Estimation

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Author Info
Richard Finlay
Eugene Seneta

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Abstract

We detail a method of simulating data from long range dependent processes with variance-gamma or "t" distributed increments, test various estimation procedures [method of moments (MOM), product-density maximum likelihood (PMLE), non-standard minimumχ-super-2and empirical characteristic function estimation] on the data, and assess the performance of each. The investigation is motivated by the apparent poor performance of the MOM technique using real data (Tjetjep & Seneta, 2006); and the need to assess the performance of PMLE for our dependent data models. In the simulations considered the product-density method performs favourably. Copyright (c) 2008 The Authors. Journal compilation (c) 2008 International Statistical Institute.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1751-5823.2008.00044.x
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Publisher Info
Article provided by International Statistical Institute in its journal International Statistical Review.

Volume (Year): 76 (2008)
Issue (Month): 2 (08)
Pages: 167-186
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Handle: RePEc:bla:istatr:v:76:y:2008:i:2:p:167-186

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