Testing volatility persistence on Markov switching stochastic volatility models

C-Tier
Journal: Economic Modeling
Year: 2013
Volume: 35
Issue: C
Pages: 45-50

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

In the literature, some researchers found that the high persistence of the volatility can be caused by Markov regime switching. This concern can be reflected as a unit root problem on the basis of Markov switching models. In this paper, our main purpose is to provide a Bayesian unit root testing approach for Markov switching stochastic volatility (MSSV) models. We illustrate the developed approach using S&P 500 daily return covering the subprime crisis started in 2008.

Technical Details

RePEc Handle
repec:eee:ecmode:v:35:y:2013:i:c:p:45-50
Journal Field
General
Author Count
2
Added to Database
2026-01-25