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Optimal stochastic volatility models

The result's identifiers

  • Result code in IS VaVaI

    <a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F49777513%3A23520%2F01%3A00064868" target="_blank" >RIV/49777513:23520/01:00064868 - isvavai.cz</a>

  • Result on the web

  • DOI - Digital Object Identifier

Alternative languages

  • Result language

    angličtina

  • Original language name

    Optimal stochastic volatility models

  • Original language description

    A new technique for nonlinear state and parameter estimation of the discrete time stochastic volatility models in the state space form is developed. The Gibbs sampler is used to construct a Markov-chain simulation tool that reflects both inherent model variability and parameter uncertainty. The Gibbs sampling algorithm is derived from the generalized data-augmentation method and the iterative Monte Carlo simulation procedures to calculating marginal state and parameters probability density functions. The design algorithm is based on a loop where samples from the correspondent data augmented probability density function are drawn. The proposed chain converges to equilibrium enabling to summarize the unobserved variance states and unknown model parameters distributions. The non-Gaussian density of the log of squared inovations is advantageously modelled as a mixture of Gaussians.

  • Czech name

  • Czech description

Classification

  • Type

    V<sub>x</sub> - Unclassified - Research report containing classified information

  • CEP classification

    BC - Theory and management systems

  • OECD FORD branch

Result continuities

  • Project

    <a href="/en/project/GA102%2F01%2F0021" target="_blank" >GA102/01/0021: Nonlinear estimation and change detection for stochastic systems</a><br>

  • Continuities

    Z - Vyzkumny zamer (s odkazem do CEZ)

Others

  • Publication year

    2001

  • Confidentiality

    S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Data specific for result type

  • Number of pages

    1

  • Place of publication

    Plzeň

  • Publisher/client name

    Západočeská univerzita

  • Version