On the performance of a new bivariate pseudo Pareto distribution with application to drought data

A new bivariate pseudo Pareto distribution is proposed, and its distributional characteristics are investigated. The parameters of this distribution are estimated by the moment-, the maximum likelihood- and the Bayesian method. Point estimators of the parameters are presented for different sample sizes. Asymptotic confidence intervals are constructed and the parameter modeling the dependency between two variables is checked. The performance of the different estimation methods is investigated by using the bootstrap method. A Markov Chain Monte Carlo simulation is conducted to estimate the Bayesian posterior distribution for different sample sizes. For illustrative purposes, a real set of drought data is investigated.