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Semiparametric Inference in Seasonal and Cyclical Long Memory Processes - (Now published in Journal of Time Series Analysis, 21 (2000), pp.1-25.)

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Author Info
Josu Artech
Peter M Robinson

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Abstract

Several semiparametric estimates of the memory parameter in standard long memory time series are now available. They consider only local behaviour of the spectrum near zero frequency, about which the spectrum is symmetric. However, long-range dependence can appear as a spectral pole at any Nyqvist frequency (reflecting seasonal or cyclical long memory), where the spectrym need display no such symmetry. We introduce Seasonal/Cyclical Asymmetric Long Memory (SCALM) processes that allow differing rates of increase on either side of such a pole. To estimate the two consequent memory parameters we extend two semiparametric methods that were proposed for the standard case of a spectrum diverging at the origin, namely the log-periodogram and Gaussian or Whittle methods. We also provide three tests of symmetry. Monte Carlo analysis of finite sample behaviour and an empirical application to UK inflation data are included. Our models and methods allow also for the posssibility of negative dependence, described by a possibly asymmetric spectral zero.

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Paper provided by Suntory and Toyota International Centres for Economics and Related Disciplines, LSE in its series STICERD - Econometrics Paper Series with number /1998/359.

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Date of creation: Sep 1998
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Handle: RePEc:cep:stiecm:/1998/359

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Related research
Keywords: Semiparametric inference long memory seasonality

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  1. Svend Hylleberg, 2006. "Seasonal Adjustment," Economics Working Papers 2006-04, School of Economics and Management, University of Aarhus. [Downloadable!]
  2. Violetta Dalla & Javier Hidalgo, 2005. "A Parametric Bootstrap Test for Cycles," STICERD - Econometrics Paper Series /2005/486, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
    Other versions:
  3. Javier Hidalgo & Yoshihiro Yajima, 2001. "Prediction and Signal Extraction of Strong Dependent Processess in the Frequency Domain," STICERD - Econometrics Paper Series /2001/418, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  4. Brandon Whitcher, 2000. "Wavelet-Based Estimation Procedures For Seasonal Long-Memory Models," Computing in Economics and Finance 2000 148, Society for Computational Economics. [Downloadable!]
  5. Javier Hidalgo, 2005. "Semiparametric Estimation for Stationary Processes whose Spectra have an Unknown Pole," STICERD - Econometrics Paper Series /2005/481, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
  6. Guglielmo Maria Caporale & Luis A. Gil-Alana, 2007. "Long Run and Cyclical Dynamics in the US Stock Market," CESifo Working Paper Series CESifo Working Paper No. , CESifo GmbH. [Downloadable!]
  7. Javier De Peña & Luis A. Gil-Alana, 2003. "Testing of Nonstationary Cycles in Financial Time Series Data," Faculty Working Papers 15/03, School of Economics and Business Administration, University of Navarra. [Downloadable!]
  8. Guglielmo Maria Caporale & Luis A. Gil-Alana & Mike Nazarski, 2004. "Testing Of Nonstationarities In The Unit Circle,Long Memory Processes And Day Of The Week Effects In Financial Data," Economics and Finance Discussion Papers 04-20, Economics and Finance Section, School of Social Sciences, Brunel University. [Downloadable!]
  9. Josu Arteche, 2002. "Gaussian Semiparametric Estimation in Long Memory in Stochastic Volatility and Signal Plus Noise Models," BILTOKI 200202, Universidad del País Vasco - Departamento de Economía Aplicada III (Econometría y Estadística). [Downloadable!]
    Other versions:
  10. Luis A. Gil-Alana, 2004. "Unit root cycles in the US unemployment rate," Economics Bulletin, Economics Bulletin, vol. 3(7), pages 1-10. [Downloadable!]
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