IGARCH effect on autoregressive lag length selection and causality tests
Abstract
Using Monte Carlo experiments, we show how information criteria determine, in the presence of GARCH errors, an optimal lag length in univariate time series and causality tests. We illustrate the simulations by testing the presence of serial correlation in exchange rates as well as Granger-causality between interest rates.(This abstract was borrowed from another version of this item.)
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Paper provided by Maastricht University in its series Open Access publications from Maastricht University with number urn:nbn:nl:ui:27-15786.Length:
Date of creation: 1996
Date of revision:
Publication status: Published in Applied economics letters (1996) v.3, p.317-323
Handle: RePEc:ner:maastr:urn:nbn:nl:ui:27-15786
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Related research
Keywords:Other versions of this item:
- Alain Hecq, 1996. "IGARCH effect on autoregressive lag length selection and causality tests," Applied Economics Letters, Taylor and Francis Journals, vol. 3(5), pages 317-323.
References
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- Jérôme HENRY & Jens WEIDMANN, 1995.
"Asymmetry in the EMS revisited: Evidence from the Causality Analysis of Daily Eurorates,"
Annales d'Economie et de Statistique,
ENSAE, issue 40, pages 125-160.
- Henry, Jerome & Jens Weidmann, 1994. "Asymmetry in the EMS revisited: Evidence from the causality analysis of daily Eurorates," Discussion Paper Serie B 280, University of Bonn, Germany.
- Bera, Anil K & Higgins, Matthew L, 1993. " ARCH Models: Properties, Estimation and Testing," Journal of Economic Surveys, Wiley Blackwell, vol. 7(4), pages 305-66, December.
- Bollerslev, Tim & Chou, Ray Y. & Kroner, Kenneth F., 1992. "ARCH modeling in finance : A review of the theory and empirical evidence," Journal of Econometrics, Elsevier, vol. 52(1-2), pages 5-59.
- Bollerslev, Tim, 1986. "Generalized autoregressive conditional heteroskedasticity," Journal of Econometrics, Elsevier, vol. 31(3), pages 307-327, April.
- Boswijk, Peter & Franses, Philip Hans, 1992. "Dynamic Specification and Cointegration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 54(3), pages 369-81, August.
Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Hecq, Alain, 1995.
"Unit root tests with level shift in the presence of GARCH,"
Economics Letters,
Elsevier, vol. 49(2), pages 125-130, August.
- Hecq, Alain, 1995. "Unit root tests with level shift in the presence of GARCH," Open Access publications from Maastricht University urn:nbn:nl:ui:27-15787, Maastricht University.
- Stavros Degiannakis & Evdokia Xekalaki, 2007. "Assessing the performance of a prediction error criterion model selection algorithm in the context of ARCH models," Applied Financial Economics, Taylor and Francis Journals, vol. 17(2), pages 149-171.
- Jerome Henry & Jens Weidmann, 2005. "The French-German Interest Rate Differential Since German," International Finance 0503009, EconWPA.
- R. Scott Hacker & Abdulnasser Hatemi-J, 2006. "Tests for causality between integrated variables using asymptotic and bootstrap distributions: theory and application," Applied Economics, Taylor and Francis Journals, vol. 38(13), pages 1489-1500.
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