Estimation and inference in a possibly multicointegrated system with a fixed number of instruments

C-Tier
Journal: Economics Letters
Year: 2025
Volume: 250
Issue: C

Authors (3)

Sun, Yixiao (not in RePEc) Phillips, Peter C.B. (Singapore Management Universit...) Kheifets, Igor L. (not in RePEc)

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

This paper shows that the mixed normal asymptotic limit of the trend IV estimator with a fixed number of deterministic instruments (fTIV) holds in both singular (multicointegrated) and nonsingular cointegration systems, thereby relaxing the exogeneity condition in (Phillips and Kheifets, 2024, Theorem 1(ii)). The mixed normality of the limiting distribution of fTIV allows for asymptotically pivotal F and t tests about the cointegration parameters and for simple efficiency comparisons of the estimators for different numbers K of instruments, as well as comparisons with the trend IV estimator when K→∞ with the sample size.

Technical Details

RePEc Handle
repec:eee:ecolet:v:250:y:2025:i:c:s016517652500134x
Journal Field
General
Author Count
3
Added to Database
2026-01-29