Simulation from the Bessel distribution with applications

George Iliopoulos and Dimitris Karlis

The Bessel distribution, introduced recently by Yuan and Kalbfleisch (Ann. Inst. Math. Statist., 2000), can be useful in many applications. In particular, this distribution appears in two Bayesian estimation problems, namely, estimation of the noncentrality parameter of a noncentral chi--square distribution and of the parameters of Downton's bivariate exponential distribution. Implementation of Markov chain Monte Carlo algorithms requires generation of observations from the Bessel distribution. In this paper we propose and compare exact simulation schemes generating Bessel variates based on certain properties of the distribution as well as the rejection method.

AMS 2000 subject classifications: 65C10, 62F15.

Key words and phrases: Bessel distribution, simulation, rejection method, noncentral chi--square distribution, Downton's bivariate exponential distribution, Markov chain Monte Carlo.

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