Abstract
Estimation of the parameters for a bivariate hidden truncated Pareto (type (IV)) models have already been discussed in the literature, see [3, 9, 13] under the classical and Bayesian paradigm. However, none of these articles explore the asymptotic properties of the likelihood estimates and some challenging issues on the inferential aspect including a test for the truncation parameter in case of a single (i.e., lower and upper truncation) or truncation parameters (in the case of a two sided truncation). In this article, we provide a likelihood ratio test for the truncation parameter for a hidden truncated (from above) bivariate Pareto (IV) model and derive the observed Fisher Information Matrix. We also discuss some potential challenges in the estimation of the model parameters under the classical setup.
