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Estimation for the discretely observed telegraph process

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Author Info
Stefano Iacus (Department of Economics, Business and Statistics, University of Milan, IT)
Nakahiro Yoshida (Graduate School of Mathematical Sciences, University of Tokyo)

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Abstract

The telegraph process {X(t), t>0}, is supposed to be observed at n+1 equidistant time points t_i=i Delta_n,i=0,1,... , n. The unknown value of lambda, the underlying rate of the Poisson process, is a parameter to be estimated. The asymptotic framework considered is the following: Delta_n -> 0, n Delta_n = T -> infty as n -> infty. We show that previously proposed moment type estimators are consistent and asymptotically normal but not efficient. We study further an approximated moment type estimator which is still not efficient but comes in explicit form. For this estimator the additional assumption n Delta_n^3 -> 0 is required in order to obtain asymptotic normality. Finally, we propose a new estimator which is consistent, asymptotically normal and asymptotically efficient under no additional hypotheses.

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Publisher Info
Paper provided by Universitá degli Studi di Milano in its series UNIMI - Research Papers in Economics, Business, and Statistics with number 1045.

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Date of creation: 27 Dec 2006
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Handle: RePEc:bep:unimip:1045

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Related research
Keywords: telegraph process discretely observed process inference for stochastic processes

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