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Lag Order and Critical Values of the Augmented Dickey-Fuller Test

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Author Info
Cheung, Yin-Wong
Lai, Kon S

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Abstract

Response surface analysis is used to obtain approximate finite-sample critical values for the augmented Dickey-Fuller test. Previous studies estimating the critical values for the test have generally ignored their possible dependence on the lag order. This study shows that the lag order, in addition to the sample size, can affect finite-sample behavior of the test. The result points to the importance of correcting for the effect of lag order in applying the augmented Dickey-Fuller test.

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

Volume (Year): 13 (1995)
Issue (Month): 3 (July)
Pages: 277-80
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Handle: RePEc:bes:jnlbes:v:13:y:1995:i:3:p:277-80

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Web page: http://www.amstat.org/publications/jbes/index.cfm?fuseaction=main

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This page was last updated on 2009-11-22.


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