Heteroscedastic Proxy Vector Autoregressions

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2022
Volume: 40
Issue: 3
Pages: 1268-1281

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

In proxy vector autoregressive models, the structural shocks of interest are identified by an instrument. Although heteroscedasticity is occasionally allowed for in inference, it is typically taken for granted that the impact effects of the structural shocks are time-invariant despite the change in their variances. We develop a test for this implicit assumption and present evidence that the assumption of time-invariant impact effects may be violated in previously used empirical models.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:40:y:2022:i:3:p:1268-1281
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25