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Robust Subsampling

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Author Info
Lorenzo Camponovo (University of Lugano)
Olivier Scaillet (University of Geneva and Swiss Finance Institute)
Fabio Trojani (University of St. Gallen)

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Abstract

We compute the breakdown point of the subsampling quantile of a general statistic, and show that it is increasing in the subsampling block size and the breakdown point of the statistic. These results imply fragile subsampling quantiles for moderate block sizes, also when subsampling procedures are applied to robust statistics. This instability is inherited by data driven block size selection procedures based on the minimum confidence interval volatility (MCIV) index. To overcome these problems, we propose for the linear regression setting a robust subsampling method, which implies a su±ciently high breakdown point and is consistent under standard conditions. Monte Carlo simulations and sensitivity analysis in the linear regression setting show that the robust subsampling with block size selection based on the MCIV index outperforms the subsampling, the classical bootstrap and the robust bootstrap, in terms of accuracy and robustness. These results show that robustness is a key aspect in selecting data driven subsampling block sizes.

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File URL: http://ssrn.com/abstract=948634
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File Function: First version, 1996
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Publisher Info
Paper provided by Swiss Finance Institute in its series Swiss Finance Institute Research Paper Series with number 06-33.

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Length: 21 pages
Date of creation: Nov 2006
Date of revision:
Handle: RePEc:chf:rpseri:rp0633

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Web page: http://www.SwissFinanceInstitute.ch
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Related research
Keywords: Subsampling; bootstrap; breakdown point; robustness; regression;

Find related papers by JEL classification:
C12 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Hypothesis Testing
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Statistical Simulation Methods

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This page was last updated on 2009-11-3.


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