Activity signature functions for high-frequency data analysis

A-Tier
Journal: Journal of Econometrics
Year: 2010
Volume: 154
Issue: 2
Pages: 125-138

Authors (2)

Todorov, Viktor (not in RePEc) Tauchen, George (Duke University)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

We define a new concept termed activity signature function, which is constructed from discrete observations of a continuous-time process, and derive its asymptotic properties as the sampling frequency increases. We show that the function is a useful device for estimating the activity level of the underlying process and in particular for deciding whether the process contains a continuous martingale. An application to $ /DM exchange rate over 1986-1999 indicates that a jump-diffusion model is more plausible than a pure-jump model. A second application to internet traffic at NASA servers shows that an infinite variation pure-jump model is appropriate for its modeling.

Technical Details

RePEc Handle
repec:eee:econom:v:154:y:2010:i:2:p:125-138
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29