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A Markov-Switching Multi-Fractal Inter-Trade Duration Model, with Application to U.S. Equities / Fei Chen, Francis X. Diebold, Frank Schorfheide.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Chen, Fei.
Contributor:
National Bureau of Economic Research.
Diebold, Francis X.
Schorfheide, Frank.
Series:
Working Paper Series (National Bureau of Economic Research) no. w18078.
NBER working paper series no. w18078
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2012.
Summary:
We propose and illustrate a Markov-switching multi-fractal duration (MSMD) model for analysis of inter-trade durations in financial markets. We establish several of its key properties with emphasis on high persistence (indeed long memory). Empirical exploration suggests MSMD's superiority relative to leading competitors.
Notes:
Print version record
May 2012.

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