Calculating Maximum Likelihood Estimators for the Generalized Pareto Distribution,
Abstract
The Generalized Pareto Distribution (GPD) is a two-parameter family of distributions which can be used to model exceedences over a threshold. Maximum likelihood parameter estimates are preferred since they are asymptotically normal and asymptotically efficient. Numerical methods are required for maximizing the loglikelihood since the minimal sufficient statistics are the order statistics and there is no obvious simplification of the nonlinear likelihood equation. An algorithm is given to compute GPD maximum likelihood estimates by reducing the two-dimensional numerical search for the zeros of the gradient vector to a one-dimensional numerical search.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1992
- Accession Number
- ADP007224
Entities
People
- Scott D. Grimshaw
Organizations
- University of Maryland