Estimating spot volatility with high-frequency financial data

A-Tier
Journal: Journal of Econometrics
Year: 2014
Volume: 181
Issue: 2
Pages: 117-135

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 construct a spot volatility estimator for high-frequency financial data which contain market microstructure noise. We prove consistency and derive the asymptotic distribution of the estimator. A data-driven method is proposed to select the scale parameter and the bandwidth parameter in the estimator. In Monte Carlo simulations, we compare the finite sample performance of our estimator with some existing estimators. Empirical examples are given to illustrate the potential applications of the estimator.

Technical Details

RePEc Handle
repec:eee:econom:v:181:y:2014:i:2:p:117-135
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-24