Hello,

I'm quite new to R but tried to learn as much as possible in the last
few months.
My problem is that I would like to estimate the model of Leon et al. (2005).
I have shortly summarised the most important equations in the following
pdf file:
http://hannes.fedorapeople.org/leon2005.pdf

My main question is now how could I introduce these two additional terms
into the Likelihood function of a(n) (existing) GARCH method.

I looked into some GARCH packages but wasn't really sure where to start.
I know that this is not really an easy task but I would be very grateful
if you could help me out by giving me some hints on how to solve this
problem.

Thanks in advance!

Johannes Lips

P.S. I sent this e-mail also to the R-help mailing list but was told I
should better send it to the finance-sig.
https://stat.ethz.ch/pipermail/r-help/2011-February/268871.html

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