Estimating an affine term structure model of interest rates with correlated noise.

Kalman filtering for the affine term structure model of interest rates is typically applied under the assumption of white noise. However, correlated noise frequently occurs during actual data processing. The accuracy and reliability of the filter are compromised if the correlated noise is assumed to...

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Bibliographic Details
Main Authors: Shu Wu, Rende Li
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0318076
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