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A Generalized Portmanteau Test for Independence of Two Infinite Order Vector Autoregressive Series

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Author Info
Chafik Bouhaddioui
Roch Roy
Abstract

In many situations, we want to verify the existence of a relationship between multivariate time series. Here, we propose a semiparametric approach for testing the independence between two infinite order vector autoregressive (VAR()) series which is an extension of Hong's (1996a) univariate results. We first filter each series by a finite-order autoregression and the test statistic is a standardized version of a weighted sum of quadratic form in residual cross-correlation at all possible lags. The weights depend on a kernel function and on a truncation parameter. Using a result of Lewis and Reinsel (1985), the asymptotic distribution of the statistic test is derived under the null hypothesis and its consistency is also established for a fixed alternative of serial cross-correlation of unknown form. Apart from standardization factors, the multivariate portmanteau statistic proposed by Bouhaddioui and Roy (2003) that takes into account a fixed number of lags can be viewed as a special case by using the truncated uniform kernel. However, many kernels lead to a greater power, as shown in an asymptotic power analysis and by a small simulation study in finite samples. A numerical example with real data is also presented.

Dans ce travail, nous proposons une généralisation au cas multivarié de l'approche de Hong (1996) afin de tester l'indépendance de deux séries multivariées stationnaires et autorégressives d'ordre infini. Il s'agit d'une approche semiparamétrique où chaque série est d'abord filtrée par une autorégression d'ordre fini et où la statistique de test est une version normalisée d'une somme pondérée de formes quadratiques dans les matrices de corrélations croisées résiduelles résultantes à tous les délais. Les poids sont définis par une fonction de noyau et un point de troncature. En utilisant un résultat de Lewis et Reinsel (1985), la loi asymptotique de la statistique de test est obtenue sous l'hypothèse nulle et la convergence du test est établie pour une contre-hypothèse fixée de corrélation sérielle de forme quelconque. À des facteurs de normalisation près, la statistique portmanteau étudiée dans Bouhaddioui et Roy (2003), qui est basée sur un nombre fixé de délais, peut être vue comme un cas particulier en utilisant le noyau uniforme tronqué. Cependant, plusieurs noyaux produisent une plus grande puissance comme le montrent une analyse asymptotique de la puissance ainsi que des simulations de Monte Carlo en échantillons finis. Un exemple avec des données réelles est aussi présenté.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2004s-06.

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Date of creation: 01 Feb 2004
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Handle: RePEc:cir:cirwor:2004s-06

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Keywords: infinite order vector autoregressive process; independence; residual crosscorrelation; kernel function; portmanteau statistic; asymptotic power; vecteurs autorégressifs d'ordre infini; indépendance; corrélations croisées résiduelles; noyaux; statistique portmanteau; puissance. asymptotique;

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  1. Hong, Yongmiao, 1996. "Consistent Testing for Serial Correlation of Unknown Form," Econometrica, Econometric Society, vol. 64(4), pages 837-64, July. [Downloadable!] (restricted)
  2. DINH TUAN PHAM & ROCH ROY & LYNE CÉDRAS, 2003. "Tests for non-correlation of two cointegrated ARMA time series," Journal of Time Series Analysis, Blackwell Publishing, vol. 24(5), pages 553-577, 09. [Downloadable!] (restricted)
  3. Geweke, John, 1981. "The Approximate Slopes of Econometric Tests," Econometrica, Econometric Society, vol. 49(6), pages 1427-42, November. [Downloadable!] (restricted)
  4. Marc Hallin & Abdessamad Saidi, 2005. "Testing Non-Correlation and Non-Causality between Multivariate ARMA Time Series," Journal of Time Series Analysis, Blackwell Publishing, vol. 26(1), pages 83-105, 01. [Downloadable!] (restricted)
  5. Paparoditis, Efstathios, 1996. "Bootstrapping Autoregressive and Moving Average Parameter Estimates of Infinite Order Vector Autoregressive Processes," Journal of Multivariate Analysis, Elsevier, vol. 57(2), pages 277-296, May. [Downloadable!] (restricted)
  6. Lewis, Richard & Reinsel, Gregory C., 1985. "Prediction of multivariate time series by autoregressive model fitting," Journal of Multivariate Analysis, Elsevier, vol. 16(3), pages 393-411, June. [Downloadable!] (restricted)
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