Exogenous shock models: analytical characterization and probabilistic construction

Matthias Scherer, Henrik Sloot

Research output: Contribution to journalArticlepeer-review

2 Scopus citations

Abstract

A new characterization for survival functions of multivariate failure-times arising in exogenous shock models with non-negative, continuous, and unbounded shocks is presented. These survival functions are the product of their ordered and individually transformed arguments. The involved transformations may depend on the specific order of the arguments and must fulfill a monotonicity condition. Conversely, every survival function of that form can be constructed using an exogenous shock model with independent and non-homogeneous shocks.

Original languageEnglish
Pages (from-to)931-959
Number of pages29
JournalMetrika
Volume82
Issue number8
DOIs
StatePublished - 1 Nov 2019

Keywords

  • Exogenous shock model
  • Fatal shock model
  • Generalized Marshall–Olkin distribution
  • Multivariate survival function

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