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Estimation risk in conditional expectiles

Marcelo Fernandes, Vitor Henriques, Eduardo Fonseca Mendes

arXiv 2 Sep 2026 · Econometrics

arXiv:2609.02673 · PDF · Extracted main text

Abstract

We establish the consistency and asymptotic normality of a two-step estimator of conditional expectiles in the context of conditional scale models. We first estimate the conditional variance parameters by quasi-maximum likelihood and then compute the unconditional expectile of the innovations using the empirical distribution of the standardized residuals. We show how replacing true innovations with standardized residuals affects the asymptotic variances of both conditional and unconditional expectile estimators. Finally, our empirical analysis reveals that conditional expectiles assess tail risk in cryptomarkets in a more robust manner than traditional quantile-based risk measures, such as value at risk and expected shortfall.

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Daouia, Abdelaati and Girard, Stéphane and Stupfler, Gilles (2018) Estimation of tail risk based on extreme expectiles0.87452100%
2Bellini, Fabio and Di Bernardino, Elena (2017) Risk management with expectiles0.81142100%
3Kuan, Chung-Ming and Yeh, Jin-Huei and Hsu, Yu-Chin (2009) Assessing value at risk with CARE, the conditional autoregressive expectile models0.81142100%
4Ziegel, Johanna F (2016) Coherence and elicitability0.81142100%
5Holzmann, Hajo and Klar, Bernhard (2016) Expectile asymptotics0.7373367%
6Daouia, Abdelaati and Gijbels, Irène and Stupfler, Gilles (2019) Extremiles: A new perspective on asymmetric least squares0.73732100%
7Artzner, Philippe and Delbaen, Freddy and Eber, Jean-Marc and Heath,… (1999) Coherent measures of risk0.64422100%
8Daouia, Abdelaati and Stupfler, Gilles and Usseglio-Carleve, Antoine (2024) An expectile computation cookbook0.64422100%
9Krätschmer, Volker and Zähle, Henryk (2017) Statistical inference for expectile-based risk measures0.64422100%
10Yao, Qiwli and Tong, Howell (1996) Asymmetric least squares regression estimation: A nonparametric approach0.58531100%

Showing the top 10 of 49 scored citations.