Midlands State University Library

Asymptotic theory for a factor GARCH model

Hafner Christian M.

Asymptotic theory for a factor GARCH model Christian M. Hafner and Arie Preminger - Econometric Theory Volume 25, number 2 .

This paper investigates the asymptotic theory for a factor GARCH (generalized autoregressive conditional heteroskedasticity) model. Sufficient conditions for asymptotic stability and existence of moments are established. These conditions allow for volatility spillover and integrated GARCH. We then show the strong consistency and asymptotic normality of the quasi–maximum likelihood estimator (QMLE) of the model parameters. The results are obtained under the finiteness of the fourth-order moment of the innovations.


Estimation theory

HB139.T52 ECO