Panel versus GARCH information in unit root testing with an application to financial markets

C-Tier
Journal: Economic Modeling
Year: 2014
Volume: 41
Issue: C
Pages: 173-176

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 a search for more powerful unit root tests, some researchers have recently proposed accounting for the information contained in the GARCH of the innovations. However, while promising, tests with GARCH are difficult to implement, which has made them quite uncommon in the empirical literature. A computationally attractive alternative is to account not for GARCH but the information contained in a panel of multiple time series. The purpose of the current note is to compare the relative power achievable from these two information sources.

Technical Details

RePEc Handle
repec:eee:ecmode:v:41:y:2014:i:c:p:173-176
Journal Field
General
Author Count
2
Added to Database
2026-01-26