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Estimating Parameters Using the Cramer-von Mises Estimator

/*----------------------------------------------------------------------

                    SAS Sample Library

        Name: hsevex07.sas
 Description: Example program from SAS/ETS High Performance
              Procedures User's Guide, The HPSEVERITY Procedure
       Title: Estimating Parameters Using the Cramer-von Mises Estimator
     Product: SAS High Performance Econometrics Software
        Keys: Severity Distribution Modeling
        PROC: HPSEVERITY
       Notes:

------------------------------------------------------------------------*/

/*------- Define Lognormal Body-GPD Tail Mixed Distribution -------*/
proc fcmp library=sashelp.svrtdist outlib=work.sevexmpl.models;
   function LOGNGPD_DESCRIPTION() $256;
      length desc $256;
      desc1 = "Lognormal Body-GPD Tail Distribution.";
      desc2 = " Mu, Sigma, and Xi are free parameters.";
      desc3 = " Xr and Pn are constant parameters.";
      desc = desc1 || desc2 || desc3;
      return(desc);
   endsub;

   function LOGNGPD_SCALETRANSFORM() $3;
      length xform $3;
      xform = "LOG";
      return (xform);
   endsub;

   subroutine LOGNGPD_CONSTANTPARM(Xr,Pn);
   endsub;

   function LOGNGPD_PDF(x, Mu,Sigma,Xi,Xr,Pn);
      cutoff = exp(Mu) * Xr;
      p = CDF('LOGN',cutoff, Mu, Sigma);
      if (x < cutoff + constant('MACEPS')) then do;
         return ((Pn/p)*PDF('LOGN', x, Mu, Sigma));
      end;
      else do;
         gpd_scale = p*((1-Pn)/Pn)/PDF('LOGN', cutoff, Mu, Sigma);
         h = (1+Xi*(x-cutoff)/gpd_scale)**(-1-(1/Xi))/gpd_scale;
         return ((1-Pn)*h);
      end;
   endsub;

   function LOGNGPD_CDF(x, Mu,Sigma,Xi,Xr,Pn);
      cutoff = exp(Mu) * Xr;
      p = CDF('LOGN',cutoff, Mu, Sigma);
      if (x < cutoff + constant('MACEPS')) then do;
         return ((Pn/p)*CDF('LOGN', x, Mu, Sigma));
      end;
      else do;
         gpd_scale = p*((1-Pn)/Pn)/PDF('LOGN', cutoff, Mu, Sigma);
         H = 1 - (1 + Xi*((x-cutoff)/gpd_scale))**(-1/Xi);
         return (Pn + (1-Pn)*H);
      end;
   endsub;

   subroutine LOGNGPD_PARMINIT(dim,x[*],nx[*],F[*],Ftype,
                        Mu,Sigma,Xi,Xr,Pn);
      outargs Mu,Sigma,Xi,Xr,Pn;
      array xe[1] / nosymbols;
      array nxe[1] / nosymbols;

      eps = constant('MACEPS');

      Pn = 0.8; /* Set mixing probability */
      _status_ = .;
      call streaminit(56789);
      Xb = svrtutil_hillcutoff(dim, x, 100, 25, _status_);
      if (missing(_status_) or _status_ = 1) then
         Xb = svrtutil_percentile(Pn, dim, x, F, Ftype);

      /* prepare arrays for excess values */
      i = 1;
      do while (i <= dim and x[i] < Xb+eps);
         i = i + 1;
      end;
      dime = dim-i+1;
      call dynamic_array(xe, dime);
      call dynamic_array(nxe, dime);
      j = 1;
      do while(i <= dim);
         xe[j] = x[i] - Xb;
         nxe[j] = nx[i];
         i = i + 1;
         j = j + 1;
      end;

      /* Initialize lognormal parameters */
      call logn_parminit(dim, x, nx, F, Ftype, Mu, Sigma);
      if (not(missing(Mu))) then
         Xr = Xb/exp(Mu);
      else
         Xr = .;

      /* Initialize GPD's shape parameter using excess values */
      call gpd_parminit(dime, xe, nxe, F, Ftype, theta_gpd, Xi);
   endsub;

   subroutine LOGNGPD_LOWERBOUNDS(Mu,Sigma,Xi,Xr,Pn);
      outargs Mu,Sigma,Xi,Xr,Pn;

      Mu   = .; /* Mu has no lower bound */
      Sigma = 0; /* Sigma > 0 */
      Xi   = 0; /* Xi > 0 */
   endsub;
quit;

/*----- Simulate a sample for the mixed-tail distribution -----*/
data testmixdist(keep=y label='Lognormal Body-GPD Tail Sample');
   call streaminit(45678);
   label y='Response Variable';
   N = 100;
   Mu = 1.5;
   Sigma = 0.25;
   Xi = 1.5;
   Pn = 0.8;

   /* Generate data comprising the lognormal body */
   Nbody = N*Pn;
   do i=1 to Nbody;
      y = exp(Mu) * rand('LOGNORMAL')**Sigma;
      output;
   end;

   /* Generate data comprising the GPD tail */
   cutoff = quantile('LOGNORMAL', Pn, Mu, Sigma);
   gpd_scale = (1-Pn) / pdf('LOGNORMAL', cutoff, Mu, Sigma);
   do i=Nbody+1 to N;
      y = cutoff + ((1-rand('UNIFORM'))**(-Xi) - 1)*gpd_scale/Xi;
      output;
   end;
run;

/*--- Set the search path for functions defined with PROC FCMP ---*/
options cmplib=(work.sevexmpl);

/*-------- Fit LOGNGPD model with PROC HPSEVERITY by using -------
  -------- the Cramer-von Mises minimum distance estimator -------*/
proc hpseverity data=testmixdist obj=cvmobj print=all;
   loss y;
   dist logngpd burr logn gpd;

   * Cramer-von Mises estimator (minimizes the distance *
   * between parametric and nonparametric estimates)    *;
   cvmobj = _cdf_(y);
   cvmobj = (cvmobj -_edf_(y))**2;
run;