J 2023

Composite pseudo-likelihood estimation for pair-tractable copulas such as Archimedean, Archimax and related hierarchical extensions

GÓRECKI, Jan and Marius HOFERT

Basic information

Original name

Composite pseudo-likelihood estimation for pair-tractable copulas such as Archimedean, Archimax and related hierarchical extensions

Authors

GÓRECKI, Jan (203 Czech Republic, guarantor, belonging to the institution) and Marius HOFERT (276 Germany)

Edition

Journal of Statistical Computation and Simulation, Taylor & Francis, 2023, 0094-9655

Other information

Language

English

Type of outcome

Článek v odborném periodiku

Field of Study

10201 Computer sciences, information science, bioinformatics

Country of publisher

United Kingdom of Great Britain and Northern Ireland

Confidentiality degree

není předmětem státního či obchodního tajemství

References:

RIV identification code

RIV/47813059:19520/23:A0000368

Organization unit

School of Business Administration in Karvina

UT WoS

000934897200001

Keywords in English

Maximum pseudo-likelihood estimator; aggregated maximum pseudo-likelihood estimator; bivariate margins; probability density function; Archimedean and Archimax copulas; hierarchical copulas

Links

GA21-03085S, research and development project.
Změněno: 15/12/2023 13:16, Ing. Jan Górecki, Ph.D.

Abstract

V originále

The pairwise pseudo-likelihood estimator (PPLE) is introduced for estimating the parameters of pair-tractable copulas, so copulas with analytically or numerically tractable pairwise margins, such as Archimedean, hierarchical Archimedean, Archimax and hierarchical Archimax copulas. In cases where feasible, the PPLE is compared, by simulation, to the standard maximum pseudo-likelihood estimator (MPLE) in terms of bias, root mean squared error (RMSE) and run time. The PPLE is also compared to the aggregated MPLE (AMPLE) for hierarchical Archimedean copulas. The simulation results indicate that the PPLE has a bias and RMSE comparable to the MPLE for those Archimedean copulas where the latter is available. For hierarchical Archimedean and hierarchical Archimax copulas for which the MPLE is not easily available, the PPLE mostly outperforms the AMPLE in bias and RMSE, with a clear advantage in terms of run time.