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Correlograms for non-stationary autoregressions

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Author Info
Bent Nielsen

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Abstract

Analysis of time series often involves correlograms and partial correlograms as graphical descriptions of temporal dependence. Two methods are available for computing these statistics: one based on autocorrelations and the other on scaled autocovariances. For a stationary time series the resulting plots are nearly identical. When it comes to time series exhibiting non-stationary features these methods can lead to very different results. This has two consequences: incorrect inferences can be drawn when confusing these concepts; better discrimination between stationary and non-stationarity is achieved when using autocorrelations instead of, or along with, the autocovariances which are commonly used in statistical software. Copyright 2006 Royal Statistical Society.

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9868.2006.00563.x
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Publisher Info
Article provided by Royal Statistical Society in its journal Journal of the Royal Statistical Society: Series B (Statistical Methodology).

Volume (Year): 68 (2006)
Issue (Month): 4 ()
Pages: 707-720
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Handle: RePEc:bla:jorssb:v:68:y:2006:i:4:p:707-720

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  1. Bent Nielsen & Eric Engler, 2007. "The empirical process of autoregressive residuals," Economics Papers 2007-W01, Economics Group, Nuffield College, University of Oxford. [Downloadable!]
  2. Bent Nielsen, 2005. "Analysis of co-explosive processes," Economics Papers 2005-W08, Economics Group, Nuffield College, University of Oxford. [Downloadable!]
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This page was last updated on 2009-10-26.


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