Asymptotic properties of Monte Carlo estimators of diffusion processes.

This paper studies the limit distributions of Monte Carlo estimators of diffusion processes. We examine two types of estimators based on the Euler scheme, one applied to the original processes, the other to a Doss transformation of the processes. We show that the transformation increases the speed o...

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Publicado en:Journal of Econometrics Vol. 134; no. 1; pp. 1 - 69
Autores principales: Detemple, Jérôme, Garcia, René, Rindisbacher, Marcel
Formato: Artículo
Publicado: Elsevier Science September 2006
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        10.1016/j.jeconom.2005.06.028
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        atl: Asymptotic properties of Monte Carlo estimators of diffusion processes.
      aug:
        au:
          Detemple, Jérôme
          Garcia, René
          Rindisbacher, Marcel
      su:
        Difference equations
        Estimation theory
        Monte Carlo method
        Mathematical transformations
        Diffusion processes
      sug:
        subj:
          Difference equations
          Estimation theory
          Monte Carlo method
          Mathematical transformations
          Diffusion processes
      ab: This paper studies the limit distributions of Monte Carlo estimators of diffusion processes. We examine two types of estimators based on the Euler scheme, one applied to the original processes, the other to a Doss transformation of the processes. We show that the transformation increases the speed of convergence of the Euler scheme. We also study estimators of conditional expectations of diffusions. After characterizing expected approximation errors, we construct second-order bias-corrected estimators. We also derive new convergence results for the Mihlstein scheme. Illustrations of the results are provided in the context of simulation-based estimation of diffusion processes. Copyright (c) 2006 Elsevier B.V.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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