This file is part of IDEAS, which uses RePEc data


[ Papers | Articles | Software | Books | Chapters | Authors | Institutions | JEL Classification | NEP reports | Search | New papers by email | Author registration | Rankings | Volunteers | FAQ | Blog | Help! ]

Exact tests and confidence sets for the tail coefficient of a-stable distributions

Author info | Abstract | Publisher info | Download info | Related research | Statistics
Author Info
Dufour, Jean-Marie
Kurz-Kim, Jeong-Ryeol

Additional information is available for the following registered author(s):

Abstract

In this paper, using the Monte Carlo (MC) method we propose an estimation and (at the same time) a test procedure for the stability parameter of a-stable distributions. One powerful advantage of the MC method is that it provides an exact significance level for finite samples, whose distribution can be far different from that of asymptotic samples on which the level of confidence interval for estimates is usually based. Statistical theory for the MC method is given. A simulation study compares the efficiency of our estimate with the Hill estimate (Hill, 1975). Construction of significance level based on the MC method is exploited and the corresponding power function is also studied. An empirical application demonstrates an easy implementation of our estimation and test procedure. It turns out that our estimate can improve the efficiency of any estimator for a in terms of mean square error. -- In der vorliegenden Arbeit wird ein auf der Monte-Carlo-Methode basierendes Schätz- und Testverfahren für den Stabilitätsparameter von a-stabilen Verteilungen vorgeschlagen. Ein entscheidender Vorteil dieses Verfahrens liegt darin, dass es genauere Konfidenzintervalle für endliche Stichprobenumfänge angibt, die häufig von denen aus asymptotisch ermittelten Verteilungen abweichen. Die statistische Theorie für die Monte-Carlo-Methode wird abgeleitet. Anhand einer Simulationsuntersuchung wird die Effizienz von unserem Verfahren und dem Schätzverfahren von Hill (1975) verglichen. Es wird gezeigt, wie sich die Konfidenzintervalle durch die Monte- Carlo-Methode konstruieren lassen. Zudem werden die zugehörigen Gütefunktionen berechnet. Weiterhin zeigt ein empirisches Beispiel die Einfachheit der empirischen Implementierung unseres Verfahrens. Es wird deutlich, dass unser Verfahren die Effizienz beliebiger Schätzer für a im Sinne vom mittleren quadratischen Fehler verbessern kann.

Download Info
To download:

If you experience problems downloading a file, check if you have the proper application to view it first. Information about this may be contained in the File-Format links below. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL: http://econstor.eu/bitstream/10419/19604/1/200316dkp.pdf
File Format: application/pdf
File Function:
Download Restriction: no

Publisher Info
Paper provided by Deutsche Bundesbank, Research Centre in its series Discussion Paper Series 1: Economic Studies with number 2003,16.

Download reference. The following formats are available: HTML (with abstract), plain text (with abstract), BibTeX, RIS (EndNote, RefMan, ProCite), ReDIF
Length:
Date of creation: 2003
Date of revision:
Handle: RePEc:zbw:bubdp1:4213

Contact details of provider:
Postal: Postfach 10 06 02, 60006 Frankfurt
Phone: 0 69 / 95 66 - 34 55
Fax: 0 69 / 95 66 30 77
Email:
Web page: http://www.bundesbank.de/
More information through EDIRC

For technical questions regarding this item, or to correct its listing, contact: (ZBW - German National Library for Economics).

Related research
Keywords:

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. McCulloch, J Huston, 1997. "Measuring Tail Thickness to Estimate the Stable Index Alpha: A Critique," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(1), pages 74-81, January.
  2. Weron, Rafal, 1996. "On the Chambers-Mallows-Stuck method for simulating skewed stable random variables," Statistics & Probability Letters, Elsevier, vol. 28(2), pages 165-171, June. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. J. Isaac Miller & Joon Y. Park, 2008. "Nonlinearity, Nonstationarity, and Thick Tails: How They Interact to Generate Persistency in Memory," Working Papers 0801, Department of Economics, University of Missouri. [Downloadable!]
    Other versions:
  2. Miller, J. Isaac & Park, Joon Y., 2005. "How They Interact to Generate Persistency in Memory," Working Papers 2005-01, Rice University, Department of Economics. [Downloadable!]
Statistics
Access and download statistics

Did you know? A tutorial is available.

This page was last updated on 2009-12-2.


This information is provided to you by IDEAS at the Department of Economics, College of Liberal Arts and Sciences, University of Connecticut using RePEc data on a server sponsored by the Society for Economic Dynamics.