Kalnina, Ilze; Linton, Oliver - Suntory and Toyota International Centres for Economics … - 2006
implementations.
Keywords: Endogenous noise; Market Microstructure; Realised Volatility;
Semimartingale
JEL … that is correlated with the signal.
3
An alternative model for endogenous noise has been developed by Barndor …�-Nielsen, Hansen,
Lunde, and Shephard (2006). In our notation, they have the endogenous noise part such that
var(vti) = O(1=n); and an …