Bias in the estimation of mean reversion in continuous-time Lévy processes

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 134
Issue: C
Pages: 16-19

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This paper develops the approximate bias of the ordinary least squares estimator of the mean reversion parameter in continuous-time Lévy processes. Several cases are considered, depending on whether the long-run mean is known or unknown and whether the initial condition is fixed or random. The approximate bias is used to construct a bias corrected estimator. The performance of the approximate bias and the bias corrected estimator is examined using simulated data.

Technical Details

RePEc Handle
repec:eee:ecolet:v:134:y:2015:i:c:p:16-19
Journal Field
General
Author Count
4
Added to Database
2026-01-24