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Selecting the Order of an Arch Model

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Author Info
Hughes, A.W.
King, M.L.
Teng, K.K.
Abstract

Due to the fact that the parameters of an ARCH process must be non-negative, inference on ARCH parameters can be improved by using inequality constrained estimation. In this paper, we extend this principle to the problem of ARCH lag order selection. We show that in the case of AIC, the appropriate adjustment to the penalty function has a simple form.

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Publisher Info
Paper provided by University of Adelaide - Department of Economics in its series Papers with number 99-1.

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Length: 28 pages
Date of creation: 1999
Date of revision:
Handle: RePEc:fth:adelai:99-1

Contact details of provider:
Postal: UNIVERSITY OF ADELAIDE, DEPARTMENT OF ECONOMICS, G.P.O. BOX 498, ADELAIDE S.A. 5001.
Phone: (618) 8303 5540
Web page: http://www.adelaide.edu.au/econ/
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Related research
Keywords: ECONOMETRICS MAXIMUM LIKELIHOOD HETEROSKEDASTICITY

Find related papers by JEL classification:
C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models
C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation and Testing

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This page was last updated on 2008-9-21.


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