Consistent Estimation of Multiple Breakpoints in Dependence Measures

A-Tier
Journal: Journal of Business & Economic Statistics
Year: 2024
Volume: 42
Issue: 2
Pages: 695-706

Authors (3)

Marvin Borsch (not in RePEc) Alexander Mayer (not in RePEc) Dominik Wied (Universität zu Köln)

Score contribution per author:

1.341 = (α=2.01 / 3 authors) × 2.0x A-tier

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

Abstract

This article proposes different methods to consistently detect multiple breaks in copula-based dependence measures. Starting with the classical binary segmentation, also the more recent wild binary segmentation (WBS) is considered. For binary segmentation, consistency of the estimators for the location of the breakpoints as well as the number of breaks is proved, taking filtering effects from AR-GARCH models explicitly into account. Monte Carlo simulations based on a factor copula as well as on a Clayton copula model illustrate the strengths and limitations of the procedures. A real data application on recent Euro Stoxx 50 data reveals some interpretable breaks in the dependence structure.

Technical Details

RePEc Handle
repec:taf:jnlbes:v:42:y:2024:i:2:p:695-706
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29