Model checks for nonlinear cointegrating regression

A-Tier
Journal: Journal of Econometrics
Year: 2018
Volume: 207
Issue: 2
Pages: 261-284

Authors (3)

Wang, Qiying (not in RePEc) Wu, Dongsheng (not in RePEc) Zhu, Ke (中国科学院,数学与系统科学研究院)

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

Using the marked empirical processes, this paper develops a test of parametric specification in a nonlinear cointegrating regression model. Unlike the kernel-smoothed U-statistic considered in Gao et al. (2009) and Wang and Phillips (2012), our new test statistic avoids the use of bandwidth, which has some advantages for practitioners. Simulations and a real data example show that our new test has a good finite sample performance. Other contributions of this paper are to provide a rigorous proof on weak convergence for a class of martingales and construct a simulated estimator of the limiting null distribution, which are interesting in their own rights.

Technical Details

RePEc Handle
repec:eee:econom:v:207:y:2018:i:2:p:261-284
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-29