CEA 42nd Annual Meetings
Friday, June 6 - Sunday, June 8, 2008
University of British Columbia, Vancouver

Author/Presenter Victoria Zinde-Walsh (McGill University)
Co-author Dongming Zhu (Beijing University)
Title Properties and Estimation of Asymmetric Exponential Power Distribution
Abstract The new Asymmetric Exponential Power Distribution (AEPD) class proposed in this paper generalizes the Skewed Exponential Power Distributions (SEPD) by introducing different decay rates of density in the left and right tails. Our parametrization provides an interpretable role for each parameter. We derive moments and moment-based measures: skewness, kurtosis, expected shortfall and demonstrate a maximum entropy property for the AEPD distributions. Consistency, asymptotic normality and efficiency of the maximum likelihood estimators over a large part of the parameter space are proved by overcoming problems created by non-smooth likelihood function; explicit analytical expressions of the asymptotic covariance matrix are given; for the SEPD class the results enlarge on the current literature. We give a convenient stochastic representation of the distribution; the Monte Carlo study illustrates theoretical results.

CEA 2008 Conference | Conference Program