External bootstrap tests for parameter stability
Abstract
This article considers tests for parameter stability over time in general econometric models, possibly nonlinear-in-variables. Existing test statistics are commonly not asymptotically pivotal under nonstandard conditions. In such cases, the external bootstrap tests proposed in this paper are appealing from a practical viewpoint. We propose to use bootstrap versions of the asymptotic critical values based on a first-order asymptotic expansion of the test statistics under the null hypothesis, which consists of a linear transformation of the unobserved ?innovations? partial sum process. The nature of these transformations under nonstandard conditions is discussed for the main testing principles. Also, we investigate the small sample performance of the proposed bootstrap tests by means of a small Monte Carlo experiment.(This abstract was borrowed from another version of this item.)
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Bibliographic Info
Article provided by Elsevier in its journal Journal of Econometrics.
Volume (Year): 109 (2002)
Issue (Month): 2 (August)
Pages: 275-303
Contact details of provider:
Web page: http://www.elsevier.com/locate/jeconom
Related research
Keywords:Other versions of this item:
- Delgado, Miguel A. & Fiteni, Inmaculada, . "External Bootstrap Tests for Parameter stability," Open Access publications from Universidad Carlos III de Madrid info:hdl:10016/2489, Universidad Carlos III de Madrid.
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Domínguez, Manuel A. & Lobato, Ignacio N., .
"A consistent specification test for models defined by conditional moment restrictions,"
Open Access publications from Universidad Carlos III de Madrid
info:hdl:10016/376, Universidad Carlos III de Madrid.
- Manuel A. Domínguez & Ignacio N. Lobato, 2006. "A Consistent Specification Test For Models Defined By Conditional Moment Restrictions," Economics Working Papers we064111, Universidad Carlos III, Departamento de Economía.
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