Strong approximation for the sums of squares of augmented GARCH sequences
Aue, Alexander ; Berkes, István ; Horváth, Lajos
Bernoulli, Tome 12 (2006) no. 2, p. 583-608 / Harvested from Project Euclid
We study so-called augmented GARCH sequences, which include many submodels of considerable interest, such as polynomial and exponential GARCH. To model the returns of speculative assets, it is particularly important to understand the behaviour of the squares of the observations. The main aim of this paper is to present a strong approximation for the sum of the squares. This will be achieved by an approximation of the volatility sequence with a sequence of blockwise independent random variables. Furthermore, we derive a necessary and sufficient condition for the existence of a unique (strictly) stationary solution of the general augmented GARCH equations. Also, necessary and sufficient conditions for the finiteness of moments are provided.
Publié le : 2006-08-14
Classification:  augmented GARCH processes,  moments,  partial sums,  stationary solutions,  strong approximation
@article{1155735928,
     author = {Aue, Alexander and Berkes, Istv\'an and Horv\'ath, Lajos},
     title = {Strong approximation for the sums of squares of augmented GARCH sequences},
     journal = {Bernoulli},
     volume = {12},
     number = {2},
     year = {2006},
     pages = { 583-608},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1155735928}
}
Aue, Alexander; Berkes, István; Horváth, Lajos. Strong approximation for the sums of squares of augmented GARCH sequences. Bernoulli, Tome 12 (2006) no. 2, pp.  583-608. http://gdmltest.u-ga.fr/item/1155735928/