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Assessing Chaos in Time Series: Statistical Aspects and Perspectives

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Author Info
Simone Giannerini (University of Bologna, Italy)
Rodolfo Rosa (University of Bologna, Italy)

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Abstract

Chaos theory offers to time series analysis new perspectives as well as concepts and ideas that have a through contribution to statistics. On the other hand, statistical methodology has shown to play a crucial role for the comprehension of nonlinear and chaotic phenomena. One peculiar feature of chaotic systems is sensitivity to initial conditions, which is responsible of the unpredictability we experience in such phenomena. One of the most popular quantity that measures this property is the maximum Lyapunov characteristic exponent (MLCE). In this paper we discuss from a statistical perspective the problems arising in estimating both the MLCE and its generalizations in time series, issues that have recently deserved attention in the community of time series analysts. We also present a method based on resampling in order to assign confidence interval to the estimates of the MLCE. It is shown that in addition to answering the question of the presence of chaos, these methods give relevant contributions to the characterization of many other aspects of nonlinear time series.

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Publisher Info
Article provided by Berkeley Electronic Press in its journal Studies in Nonlinear Dynamics & Econometrics.

Volume (Year): 8 (2004)
Issue (Month): 2 ()
Pages: 1215-1215
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Handle: RePEc:bep:sndecm:8:2004:2:1215-1215

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Related research
Keywords: Nonlinear time series chaos Lyapunov exponents resampling methods nonparametric techniques

References listed on IDEAS
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  1. Joon Y. Park & Yoon-Jae Whang, 1999. "Random Walk or Chaos: A Formal Test on the Lyapunov Exponent," Working Paper Series no9, Institute of Economic Research, Seoul National University. [Downloadable!]
  2. Oliver Linton & Mototsugu Shintani, 2003. "Nonparametric Neural Network Estimation of Lyapunov Exponents and a Direct Test for Chaos," STICERD - Econometrics Paper Series /2003/455, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
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  3. Whang, Yoon-Jae & Linton, Oliver, 1999. "The asymptotic distribution of nonparametric estimates of the Lyapunov exponent for stochastic time series," Journal of Econometrics, Elsevier, vol. 91(1), pages 1-42, July. [Downloadable!] (restricted)
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This page was last updated on 2008-11-19.


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