NONPARAMETRIC FILTERING OF THE REALIZED SPOT VOLATILITY: A KERNEL-BASED APPROACH

B-Tier
Journal: Econometric Theory
Year: 2010
Volume: 26
Issue: 1
Pages: 60-93

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

A kernel weighted version of the standard realized integrated volatility estimator is proposed. By different choices of the kernel and bandwidth, the measure allows us to focus on specific characteristics of the volatility process. In particular, as the bandwidth vanishes, an estimator of the realized spot volatility is obtained. We denote this the filtered spot volatility. We show consistency and asymptotic normality of the kernel smoothed realized volatility and the filtered spot volatility. We consider boundary issues and propose two methods to handle these. The choice of bandwidth is discussed and data-driven selection methods are proposed. A simulation study examines the finite sample properties of the estimators.

Technical Details

RePEc Handle
repec:cup:etheor:v:26:y:2010:i:01:p:60-93_09
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-25