The Lambert Way to Gaussianize Heavy-Tailed Data with the Inverse of Tukey's h Transformation as a Special Case.

I present a parametric, bijective transformation to generate heavy tail versions of arbitrary random variables. The tail behavior of this heavy tail Lambert W × F X random variable depends on a tail parameter δ ≥ 0: for δ = 0, Y ≡ X, for δ > 0 Y has heavier tails than X. For X being Gaussian it redu...

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Publicado en:Scientific World Journal Vol. 2015; pp. 1 - 17
Autor principal: Goerg, Georg M.
Formato: Journal Article
Publicado: Wiley-Blackwell 8/25/2015
Acceso en línea:Ver este registro en EBSCOhost
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      dt: 8/25/2015
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        atl: The Lambert Way to Gaussianize Heavy-Tailed Data with the Inverse of Tukey's h Transformation as a Special Case.
      aug:
        au: Goerg, Georg M.
        affil: Department of Statistics, Carnegie Mellon University, Pittsburgh, PA 15213, USA
      sug:
      ab: I present a parametric, bijective transformation to generate heavy tail versions of arbitrary random variables. The tail behavior of this heavy tail Lambert W × F X random variable depends on a tail parameter δ ≥ 0: for δ = 0, Y ≡ X, for δ > 0 Y has heavier tails than X. For X being Gaussian it reduces to Tukey's h distribution. The Lambert W function provides an explicit inverse transformation, which can thus remove heavy tails from observed data. It also provides closed-form expressions for the cumulative distribution (cdf) and probability density function (pdf). As a special case, these yield analytic expression for Tukey's h pdf and cdf. Parameters can be estimated by maximum likelihood and applications to S&P 500 log-returns demonstrate the usefulness of the presented methodology. The R package Lambert W implements most of the introduced methodology and is publicly available on CRAN.
      pubtype: Academic Journal
      doctype: Journal Article
      ougenre: Article
    language: English
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