A simple test on structural change in long-memory time series

C-Tier
Journal: Economics Letters
Year: 2018
Volume: 163
Issue: C
Pages: 90-94

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We propose a simple test on structural change in long-range dependent time series. It is based on the idea that the test statistic of the standard CUSUM test retains its asymptotic distribution if it is applied to fractionally differenced data. We prove that our approach is asymptotically valid, if the memory is estimated consistently under the null hypothesis. Therefore, the well-known CUSUM test can be used on the differenced data without any further modification. In a simulation study, we compare our test with a CUSUM test on structural change that is specifically constructed for long-memory time series and show that our approach performs reasonably well.

Technical Details

RePEc Handle
repec:eee:ecolet:v:163:y:2018:i:c:p:90-94
Journal Field
General
Author Count
3
Added to Database
2026-01-25