Least squares volatility change point estimation for partially observed diffusion processes

dc.creatorDe Gregorio, A.
dc.creatorIacus, S. M.
dc.date2007-09-19
dc.date.accessioned2026-07-07T08:30:48Z
dc.date.available2026-07-07T08:30:48Z
dc.descriptionA one dimensional diffusion process $X=\{X_t, 0\leq t \leq T\}$, with drift $b(x)$ and diffusion coefficient $σ(θ, x)=\sqrtθ σ(x)$ known up to $θ>0$, is supposed to switch volatility regime at some point $t^*\in (0,T)$. On the basis of discrete time observations from $X$, the problem is the one of estimating the instant of change in the volatility structure $t^*$ as well as the two values of $θ$, say $θ_1$ and $θ_2$, before and after the change point. It is assumed that the sampling occurs at regularly spaced times intervals of length $Δ_n$ with $nΔ_n=T$. To work out our statistical problem we use a least squares approach. Consistency, rates of convergence and distributional results of the estimators are presented under an high frequency scheme. We also study the case of a diffusion process with unknown drift and unknown volatility but constant.
dc.identifierhttps://arxiv.org/abs/0709.2967
dc.identifierhttp://arxiv.org/abs/0709.2967
dc.identifier.urihttp://salesiana.dossiersoluciones.com/handle/123456789/138334
dc.subjectStatistics Theory
dc.subjectProbability
dc.subjectApplications
dc.titleLeast squares volatility change point estimation for partially observed diffusion processes
dc.typetext

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