SOME PROPERTIES OF VECTOR AUTOREGRESSIVE PROCESSES WITH MARKOV-SWITCHING COEFFICIENTS

B-Tier
Journal: Econometric Theory
Year: 2000
Volume: 16
Issue: 1
Pages: 23-43

Score contribution per author:

2.011 = (α=2.01 / 1 authors) × 1.0x B-tier

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

Abstract

Some statistical properties of a vector autoregressive process with Markov-switching coefficients are considered. Sufficient conditions for this nonlinear process to be covariance stationary are given. The second moments of the process are derived under the conditions. The autocovariance matrix decays at exponential rate, permitting the application of the law of large numbers. Under the stationarity conditions, although sharing the “mean-reverting” property with conventional linear stationary processes, the process offers richer short-run dynamics such as conditional heteroskedasticity, asymmetric responses, and occasional nonstationary behavior.

Technical Details

RePEc Handle
repec:cup:etheor:v:16:y:2000:i:01:p:23-43_16
Journal Field
Econometrics
Author Count
1
Added to Database
2026-01-29