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smoothtail (version 2.0.6)

falkMVUE: Compute original and smoothed version of Falk's estimator for a known endpoint

Description

Given an ordered sample of either exceedances or upper order statistics which is to be modeled using a GPD with distribution function \(F\), this function provides Falk's estimator of the shape parameter \(\gamma \in [-1,0]\) if the endpoint

$$\omega(F) = \sup\{x \, : \, F(x) < 1\}$$

of \(F\) is known. Precisely,

$$\hat \gamma_{\rm{MVUE}} = \hat \gamma_{\rm{MVUE}}(k,n) = \frac{1}{k} \sum_{j=1}^k \log \Bigl(\frac{\omega(F)-H^{-1}((n-j+1)/n)}{\omega(F)-H^{-1}((n-k)/n)}\Bigr), \; \; k=2,\ldots,n-1$$

for \(H\) either the empirical or the distribution function based on the log--concave density estimator. Note that for any \(k\), \(\hat \gamma_{\rm{MVUE}} : R^n \to (-\infty, 0)\). If \(\hat \gamma_{\rm{MVUE}} \not \in [-1,0)\), then it is likely that the log-concavity assumption is violated.

Usage

falkMVUE(est, omega, ks = NA)

Value

n x 3 matrix with columns: indices \(k\), Falk's MVUE estimator using the log-concave density estimate, and the ordinary Falk MVUE estimator based on the order statistics.

Arguments

est

Log-concave density estimate based on the sample as output by logConDens (a dlc object).

omega

Known endpoint. Make sure that \(\omega \ge X_{(n)}\).

ks

Indices \(k\) at which Falk's estimate should be computed. If set to NA defaults to \(2, \ldots, n-1\).

Author

Kaspar Rufibach (maintainer), kaspar.rufibach@gmail.com,
http://www.kasparrufibach.ch

Samuel Mueller, samuel.muller@mq.edu.au

Kaspar Rufibach acknowledges support by the Swiss National Science Foundation SNF, http://www.snf.ch

References

Mueller, S. and Rufibach K. (2009). Smooth tail index estimation. J. Stat. Comput. Simul., 79, 1155--1167.

Falk, M. (1994). Extreme quantile estimation in \(\delta\)-neighborhoods of generalized Pareto distributions. Statistics and Probability Letters, 20, 9--21.

Falk, M. (1995). Some best parameter estimates for distributions with finite endpoint. Statistics, 27, 115--125.

See Also

Other approaches to estimate \(\gamma\) based on the fact that the density is log--concave, thus \(\gamma \in [-1,0]\), are available as the functions pickands, falk, generalizedPick.

Examples

Run this code
# generate ordered random sample from GPD
set.seed(1977)
n <- 20
gam <- -0.75
x <- rgpd(n, gam)

## generate dlc object
est <- logConDens(x, smoothed = FALSE, print = FALSE, gam = NULL, xs = NULL)

# compute tail index estimators
omega <- -1 / gam
falkMVUE(est, omega)

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