Tests for m-dependence Based on Sample Splitting Methods
Abstract
This paper develops new inference methods for m-dependent data. Our approach is based on sample splitting by regular sampling of original data at lower frequencies, so that standard techniques can be used for independent data in individual subsamples. We then explore several alternatives of aggregation across subsample statistics and investigate their asymptotic and finite sample properties. We apply our methods to nonparametric tests of the predictability of excess returns in the presence of m-dependence. We also illustrate how our serial dependence tests can provide valid information for identifying particular economic alternatives when testing the expectations hypothesis in foreign exchange markets.Download Info
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Paper provided by Research Institute for Market Economy, Sogang University in its series Working Papers with number 1108.Length: 51 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:sgo:wpaper:1108
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Related research
Keywords: m-dependence; sample splitting; pooled method; Wald method; minimum/maximum/median method; expectations hypothesis.;Other versions of this item:
- Moon, Seongman & Velasco, Carlos, 2013. "Tests for m-dependence based on sample splitting methods," Journal of Econometrics, Elsevier, vol. 173(2), pages 143-159.
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
- F31 - International Economics - - International Finance - - - Foreign Exchange
- F37 - International Economics - - International Finance - - - International Finance Forecasting and Simulation: Models and Applications
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-11-28 (All new papers)
- NEP-ECM-2011-11-28 (Econometrics)
References
References listed on IDEASPlease report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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