Realized extreme quantile: A joint model for conditional quantiles and measures of volatility with EVT refinements

B-Tier
Journal: Journal of Applied Econometrics
Year: 2018
Volume: 33
Issue: 3
Pages: 398-415

Authors (3)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

We propose a new framework exploiting realized measures of volatility to estimate and forecast extreme quantiles. Our realized extreme quantile (REQ) combines quantile regression with extreme value theory and uses a measurement equation that relates the realized measure to the latent conditional quantile. Model estimation is performed by quasi maximum likelihood, and a simulation experiment validates this estimator in finite samples. An extensive empirical analysis shows that high‐frequency measures are particularly informative of the dynamic quantiles. Finally, an out‐of‐sample forecast analysis of quantile‐based risk measures confirms the merit of the REQ.

Technical Details

RePEc Handle
repec:wly:japmet:v:33:y:2018:i:3:p:398-415
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-24