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Properties of the Sieve Bootstrap for Fractionally Integrated and Non-Invertible Processes

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Author Info
D. S. Poskitt
Abstract

In this article, we investigate the consequences of applying the sieve bootstrap under regularity conditions that are sufficiently general to encompass both fractionally integrated and non-invertible processes. The sieve bootstrap is obtained by approximating the data-generating process by an autoregression, whose order h increases with the sample size T. The sieve bootstrap may be particularly useful in the analysis of fractionally integrated processes since the statistics of interest can often be non-pivotal with distributions that depend on the fractional index d. The validity of the sieve bootstrap is established for |d|<1/2 and it is shown that when the sieve bootstrap is used to approximate the distribution of a general class of statistics then the error rate will be of an order smaller than , &bgr;>0. Practical implementation of the sieve bootstrap is considered and the results are illustrated using a canonical example. Copyright 2007 The Author

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File URL: http://www.blackwell-synergy.com/doi/abs/10.1111/j.1467-9892.2007.00554.x
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Publisher Info
Article provided by Blackwell Publishing in its journal Journal of Time Series Analysis.

Volume (Year): 29 (2008)
Issue (Month): 2 (03)
Pages: 224-250
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Handle: RePEc:bla:jtsera:v:29:y:2008:i:2:p:224-250

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


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