Research

Paper

TESTING March 24, 2026

Critical LAN and Score Tests for Mixed Fractional Models under High-Frequency Observation at H=3/4

Authors

Chunhao Cai, Yiwu Shang, Cong Zhang

Abstract

We study the critical boundary $H=3/4$ for two mixed fractional models under high-frequency observation, namely mixed fractional Brownian motion and mixed fractional Ornstein--Uhlenbeck. For different reasons, both the supercritical normalization for $H>3/4$ and the subcritical normalization for $H<3/4$ fail at this value. We identify the exact critical first-order scales, prove the corresponding score central limit theorems, and show that once the explicit linear term in the $H$-score is removed, the resulting $(σ,H)$-block is already non-degenerate. Thus, in contrast with the regime $H>3/4$, the critical point is resolved by a single triangular local reparametrization. Building on this reduction, we derive the critical second-order likelihood expansion and establish LAN for both models with fully explicit leading information constants. Motivated by a testing viewpoint from mathematical finance, we additionally derive score-type tests at the critical boundary. In particular, we formulate one-sided procedures for detecting whether the system enters the supercritical side $H>3/4$. The proposed tests are calibrated under the critical constraint $H=3/4$, use a right-tail rejection region dictated by the LAN drift, and admit fully explicit normalizations at the leading order.

Metadata

arXiv ID: 2603.22888
Provider: ARXIV
Primary Category: math.ST
Published: 2026-03-24
Fetched: 2026-03-25 06:02

Related papers

Raw Data (Debug)
{
  "raw_xml": "<entry>\n    <id>http://arxiv.org/abs/2603.22888v1</id>\n    <title>Critical LAN and Score Tests for Mixed Fractional Models under High-Frequency Observation at H=3/4</title>\n    <updated>2026-03-24T07:37:21Z</updated>\n    <link href='https://arxiv.org/abs/2603.22888v1' rel='alternate' type='text/html'/>\n    <link href='https://arxiv.org/pdf/2603.22888v1' rel='related' title='pdf' type='application/pdf'/>\n    <summary>We study the critical boundary $H=3/4$ for two mixed fractional models under high-frequency observation, namely mixed fractional Brownian motion and mixed fractional Ornstein--Uhlenbeck. For different reasons, both the supercritical normalization for $H&gt;3/4$ and the subcritical normalization for $H&lt;3/4$ fail at this value. We identify the exact critical first-order scales, prove the corresponding score central limit theorems, and show that once the explicit linear term in the $H$-score is removed, the resulting $(σ,H)$-block is already non-degenerate. Thus, in contrast with the regime $H&gt;3/4$, the critical point is resolved by a single triangular local reparametrization. Building on this reduction, we derive the critical second-order likelihood expansion and establish LAN for both models with fully explicit leading information constants.\n  Motivated by a testing viewpoint from mathematical finance, we additionally derive score-type tests at the critical boundary. In particular, we formulate one-sided procedures for detecting whether the system enters the supercritical side $H&gt;3/4$. The proposed tests are calibrated under the critical constraint $H=3/4$, use a right-tail rejection region dictated by the LAN drift, and admit fully explicit normalizations at the leading order.</summary>\n    <category scheme='http://arxiv.org/schemas/atom' term='math.ST'/>\n    <published>2026-03-24T07:37:21Z</published>\n    <arxiv:primary_category term='math.ST'/>\n    <author>\n      <name>Chunhao Cai</name>\n    </author>\n    <author>\n      <name>Yiwu Shang</name>\n    </author>\n    <author>\n      <name>Cong Zhang</name>\n    </author>\n  </entry>"
}