A NONPARAMETRIC GOODNESS-OF-FIT-BASED TEST FOR CONDITIONAL HETEROSKEDASTICITY

B-Tier
Journal: Econometric Theory
Year: 2013
Volume: 29
Issue: 1
Pages: 187-212

Authors (2)

Su, Liangjun (Tsinghua University) Ullah, Aman (not in RePEc)

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

In this paper we propose a new nonparametric test for conditional heteroskedasticity based on a measure of nonparametric goodness-of-fit (R2) that is obtained from the local polynomial regression of the residuals from a parametric regression on some covariates. We show that after being appropriately standardized, the nonparametric R2 is asymptotically normally distributed under the null hypothesis and a sequence of Pitman local alternatives. We also prove the consistency of the test and propose a bootstrap method to obtain the bootstrap p-values. We conduct a small set of simulations and compare our test with some popular parametric and nonparametric tests in the literature.

Technical Details

RePEc Handle
repec:cup:etheor:v:29:y:2013:i:01:p:187-212_00
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-29