Irreducibility and continuity assumptions for positive operators with application to threshold GARCH time series models
Cline, Daren B. H.
Adv. in Appl. Probab., Tome 43 (2011) no. 1, p. 49-76 / Harvested from Project Euclid
Suppose that {Xt} is a Markov chain such as the state space model for a threshold GARCH time series. The regularity assumptions for a drift condition approach to establishing the ergodicity of {Xt} typically are ϕ-irreducibility, aperiodicity, and a minorization condition for compact sets. These can be very tedious to verify due to the discontinuous and singular nature of the Markov transition probabilities. We first demonstrate that, for Feller chains, the problem can at least be simplified to focusing on whether the process can reach some neighborhood that satisfies the minorization condition. The results are valid not just for the transition kernels of Markov chains but also for bounded positive kernels, opening the possibility for new ergodic results. More significantly, we show that threshold GARCH time series and related models of interest can often be embedded into Feller chains, allowing us to apply the conclusions above.
Publié le : 2011-03-15
Classification:  Feller operator,  T-chain,  GARCH,  threshold time series,  60J05,  37A50,  62M10,  91B84
@article{1300198512,
     author = {Cline, Daren B. H.},
     title = {Irreducibility and continuity assumptions for positive operators with application to threshold GARCH time series models},
     journal = {Adv. in Appl. Probab.},
     volume = {43},
     number = {1},
     year = {2011},
     pages = { 49-76},
     language = {en},
     url = {http://dml.mathdoc.fr/item/1300198512}
}
Cline, Daren B. H. Irreducibility and continuity assumptions for positive operators with application to threshold GARCH time series models. Adv. in Appl. Probab., Tome 43 (2011) no. 1, pp.  49-76. http://gdmltest.u-ga.fr/item/1300198512/