On testing for nonlinearity in multivariate time series

C-Tier
Journal: Economics Letters
Year: 2014
Volume: 125
Issue: 1
Pages: 1-4

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

This paper considers a multivariate extension of the test for neglected nonlinearity proposed by Tsay (1986) that uses principal components to overcome the problem of dimensionality that is common with tests of this type. Monte Carlo experiments reveal that the modified multivariate test provides a significant dimensional reduction without suffering from any systematic level distortion or power loss, and is more powerful than univariate nonlinearity tests.

Technical Details

RePEc Handle
repec:eee:ecolet:v:125:y:2014:i:1:p:1-4
Journal Field
General
Author Count
2
Added to Database
2026-01-29