Estimation of parameters of the ornstein-uhlenbeck type processes with continuum of moment conditions

Yinfeng Wang, Yanlin Tang, Xinsheng Zhang

Research output: Contribution to journalArticlepeer-review

Abstract

In this article, we develop a new method of parametric estimation for process of Ornstein-Uhlenbeck type. The proposed method is based on GMM with a continuum of moment conditions (CGMM), which is introduced in Carrasco and Florens (2002), and the estimator is called the CGMM estimator. We show that this CGMM estimator has consistency and asymptotic normality. Simulation studies evidence that the proposed method performs quite well in small-sample cases.

Original languageEnglish
Pages (from-to)5189-5203
Number of pages15
JournalCommunications in Statistics - Theory and Methods
Volume44
Issue number24
DOIs
StatePublished - 17 Dec 2015
Externally publishedYes

Keywords

  • GMM with Continuum of Moment Conditions (CGMM)
  • Parametric Estimation
  • Process of Ornstein-Uhlenbeck type

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