• DocumentCode
    536489
  • Title

    MCMC Algorithm and Simulation of a Class of Jump VaR Estimation

  • Author

    Wang, Jingyong ; Xue, Lida

  • Author_Institution
    Econ. & Trade Dept., TongLing Univ., Tongling, China
  • fYear
    2010
  • fDate
    7-9 Nov. 2010
  • Firstpage
    1
  • Lastpage
    4
  • Abstract
    This paper develops a class of jump stochastic volatility threshold model of VaR Estimation from a Bayesian viewpoint. Bayesian inferences of the unknown parameters are obtained with respect to a subjective prior distribution via Markov chain Monte Carlo(MCMC) method, MCMC algorithm and the value at risk(VaR) predictive are also developed. Based on simulation, if the jump is not Considered, the value at risk is overestimated. The precision of value at risk estimation is increased.
  • Keywords
    Markov processes; Monte Carlo methods; belief networks; financial management; risk management; stochastic programming; Bayesian inference; MCMC Algorithm; Markov chain Monte Carlo method; VaR Estimation; jump stochastic volatility threshold model; value at risk; Approximation methods; Bayesian methods; Biological system modeling; Density functional theory; Estimation; Markov processes;
  • fLanguage
    English
  • Publisher
    ieee
  • Conference_Titel
    E-Product E-Service and E-Entertainment (ICEEE), 2010 International Conference on
  • Conference_Location
    Henan
  • Print_ISBN
    978-1-4244-7159-1
  • Type

    conf

  • DOI
    10.1109/ICEEE.2010.5660186
  • Filename
    5660186