transitional density of the process. The empirical likelihood is used to formulate a statistic, for each kernel smoothing bandwidth …, which is effectively a Studentized L2-distance between the kernel transitional density estimator and the parametric … transitional density implied by the parametric process. To reduce the sensitivity of the test on smoothing bandwidth choice, the …

the transitional density of an SDE from a series of simulated trials. The second approach uses a spectral technique to …