ARCH and GARCH parameter estimation in presence of additive noise using particle methods

Saman Mousazadeh, Israel Cohen

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

Abstract

In this paper, we propose a new method based on particle filters for maximum likelihood (ML) estimation of the parameters of autoregressive conditional heteroscedasticity (ARCH) and generalized autoregressive conditional heteroscedasticity (GARCH) models. Our method is based on gradient descend method and active set method for maximizing the likelihood function over parameters under stationarity constraints. The gradient of the likelihood function of observation given the parameters of the model, which is needed for gradient based optimization algorithm, is estimated using particle methods. Simulation results show the advantage of the proposed method over competing techniques.

Original languageEnglish
Title of host publication2013 IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2013 - Proceedings
Pages6279-6282
Number of pages4
DOIs
StatePublished - 18 Oct 2013
Event2013 38th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2013 - Vancouver, BC, Canada
Duration: 26 May 201331 May 2013

Publication series

NameICASSP, IEEE International Conference on Acoustics, Speech and Signal Processing - Proceedings

Conference

Conference2013 38th IEEE International Conference on Acoustics, Speech, and Signal Processing, ICASSP 2013
Country/TerritoryCanada
CityVancouver, BC
Period26/05/1331/05/13

Keywords

  • ARCH
  • GARCH
  • noisy observations
  • parameter estimation
  • particle methods

All Science Journal Classification (ASJC) codes

  • Software
  • Signal Processing
  • Electrical and Electronic Engineering

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