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Detection of Multiple Changes of Variance Using Posterior Odds

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Author Info
Inclan, Carla
Abstract

This article uses a Bayesian procedure based on obtaining posterior odds to assess the evidence about the existence of multiple changes of variance in a time series. The approach is developed for sequences of independent observations. An extension to consider autoregressive models is also discussed. The information on the data about the location of the change points and the magnitude of the variances at the different pieces of the series is summarized through posterior distributions. The procedure is illustrated with a well-known financial series.

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Publisher Info
Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 11 (1993)
Issue (Month): 3 (July)
Pages: 289-300
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Handle: RePEc:bes:jnlbes:v:11:y:1993:i:3:p:289-300

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  1. Jean-Yves Pitarakis, 2003. "Least Squares Estimation and Tests of Breaks in Mean and Variance under Misspecification," Econometrics 0312004, EconWPA. [Downloadable!]
    Other versions:
  2. Lubos Pastor & Robert F. Stambaugh, 2000. "The Equity Premium and Structural Breaks," NBER Working Papers 7778, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  3. Yuzhi Cai & Neville Davies, 2003. "Monitoring the parameter changes in general ARIMA time series models," Journal of Applied Statistics, Taylor and Francis Journals, vol. 30(9), pages 983-1001, November. [Downloadable!] (restricted)
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