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Improvement of the Likelihood Ratio Test Statistic in ARMA Models

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Author Info
Bernardo M. Lagos
Pedro A. Morettin
Abstract

In this paper, we develop a Bartlett correction for the likelihood ratio statistic used to test hypotheses about parameters of a Gaussian stationary and invertible model belonging to the ARMA (autoregressive moving average) family. Alternative hypotheses with and without disturbance parameters are considered. The correction formulae are written in matrix form with the advantage of being easily implemented with the aid of some symbolic or numerical matrix language. Some simulation results are also presented. Copyright 2004 Blackwell Publishing Ltd.

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Article provided by Blackwell Publishing in its journal Journal of Time Series Analysis.

Volume (Year): 25 (2004)
Issue (Month): 1 (01)
Pages: 83-101
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Handle: RePEc:bla:jtsera:v:25:y:2004:i:1:p:83-101

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