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Statistical inference for Levy-driven graph supOU processes: From short- to long-memory in high-dimensional time series

2025/02/12 by Mehta, Shreya, Veraart, Almut E. D.
#60E07 #60F05 #60G10 #60G57 #62F99 #62M10 #62P99 #Applications (stat.AP) #FOS: Computer and information sciences #FOS: Mathematics #Methodology (stat.ME) #Statistics Theory (math.ST)

paper · doi:10.48550/arxiv.2502.08838

Abstract

This article introduces Levy-driven graph supOU processes, offering a parsimonious parametrisation for high-dimensional time-series, where dependencies between the individual components are governed via a graph structure. Specifically, we propose a model specification that allows for a smooth transition between short- and long-memory settings while accommodating a wide range of marginal distributions. We further develop an inference procedure based on the generalised method of moments, establish its asymptotic properties and demonstrate its strong finite sample performance through a simulation study. Finally, we illustrate the practical relevance of our new model and estimation method in an empirical study of wind capacity factors in an European electricity network context.

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