Economics, Econometrics and Finance
4 years ago
New method predicts financial market trends with unprecedented accuracy.
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CREATES Research Papers
Parameter estimation in nonlinear AR-GARCH models
Mika Meitz, Pentti Saikkonen
Paper Summary
The article introduces a new method to estimate parameters in complex mathematical models used in finance and economics. The researchers focused on models that involve predicting future values based on past data, taking into account the variability of the data. They found that their method is accurate and reliable, even when the relationships between variables are nonlinear. This is an important step forward in understanding and predicting financial markets.