INCONSISTENT VAR REGRESSION WITH COMMON EXPLOSIVE ROOTS

B-Tier
Journal: Econometric Theory
Year: 2013
Volume: 29
Issue: 4
Pages: 808-837

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

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

Abstract

Nielsen (Working paper, University of Oxford, 2009) shows that vector autoregression is inconsistent when there are common explosive roots with geometric multiplicity greater than unity. This paper discusses that result, provides a coexplosive system extension and an illustrative example that helps to explain the finding, gives a consistent instrumental variable procedure, and reports some simulations. Some exact limit distribution theory is derived and a useful new reverse martingale central limit theorem is proved.

Technical Details

RePEc Handle
repec:cup:etheor:v:29:y:2013:i:04:p:808-837_00
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29