Dacheng Xiu

  1. Non-Gaussian Quasi Maximum Likelihood Estimation of GARCH Models.

    Authors: Jianqing Fan, Lei Qi, Dacheng Xiu
    Subjects: Methodology
    Abstract

    The non-Gaussian quasi maximum likelihood estimator is frequently used in
    GARCH models with intension to improve the efficiency of the GARCH parameters.
    However, the method is usually inconsistent unless the quasi-likelihood happens
    to be the true one. We identify an unknown scale parameter that is critical to
    the consistent estimation of non-Gaussian QMLE. As a part of estimating this
    unknown parameter, a two-step non-Gaussian QMLE (2SNG-QMLE) is proposed for
    estimation the GARCH parameters.

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