Fall Seminar Series - October 14, 2004
University of Minnesota
School of Statistics
College of Liberal Arts

Filtering with a Marked Point Process Observation: Applications to the Econometrics of Ultra-High-Frequency Data

Yong Zeng
Department of Mathematics and Statistics
University of Missouri

Thursday, October 14, 2004
NOTE NEW TIME
3:30 PM, 115 Ford Hall
Minneapolis, East Bank Campus
Social at 3:00 PM, 300 Ford Hall

Abstract

Ultra-high-frequency (UHF) data is naturally modeled as a marked point process (MPP). In this talk, we propose a general filtering model for UHF data. The statistical foundations of the proposed model - likelihoods, posterior, likelihood ratios and Bayes factors - are studied. They are characterized by stochastic differential equations such as filtering equations. Convergence theorems for consistent, efficient algorithms will be established. Two general approaches for constructing algorithms will be discussed. One approach is Kushner's Markov chain approximation method, and the other is Sequential Monte Carlo method or particle filtering method. Some simulation and real data examples will be provided.