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Quasi-maximum likelihood estimation of periodic GARCH and periodic ARMA-GARCH processes

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Author Info
Abdelhakim Aknouche
Abdelouahab Bibi
Abstract

This article establishes the strong consistency and asymptotic normality (CAN) of the quasi-maximum likelihood estimator (QMLE) for generalized autoregressive conditionally heteroscedastic (GARCH) and autoregressive moving-average (ARMA)-GARCH processes with periodically time-varying parameters. We first give a necessary and sufficient condition for the existence of a strictly periodically stationary solution of the periodic GARCH (PGARCH) equation. As a result, it is shown that the moment of some positive order of the PGARCH solution is finite, under which we prove the strong consistency and asymptotic normality of the QMLE for a PGARCH process without any condition on its moments and for a periodic ARMA-GARCH (PARMA-PGARCH) under mild conditions. Copyright 2008 The Authors. Journal compilation 2008 Blackwell Publishing Ltd

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9892.2008.00598.x
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Article provided by Blackwell Publishing in its journal Journal of Time Series Analysis.

Volume (Year): 30 (2009)
Issue (Month): 1 (01)
Pages: 19-46
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Handle: RePEc:bla:jtsera:v:30:y:2009:i:1:p:19-46

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This page was last updated on 2009-10-26.


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