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Estimation of a Copula when a Covariate Affects only Marginal Distributions

Estimation of a Copula when a Covariate Affects only Marginal Distributions

Abstract This paper is concerned with studying the dependence structure between two random variables Y 1 and Y 2 in the presence of a covariate X , which affects both marginal distributions but not the dependence structure. This is reflected in the property that the conditional copula of Y 1 …