Semiparametric inference in multivariate fractionally cointegrated systems

A-Tier
Journal: Journal of Econometrics
Year: 2010
Volume: 157
Issue: 2
Pages: 492-511

Authors (2)

Score contribution per author:

2.011 = (α=2.01 / 2 authors) × 2.0x A-tier

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

Abstract

A semiparametric multivariate fractionally cointegrated system is considered, integration orders possibly being unknown and I(0) unobservable inputs having nonparametric spectral density. Two estimates of the vector of cointegrating parameters [nu] are considered. One involves inverse spectral weighting and the other is unweighted but uses a spectral estimate at frequency zero. Both corresponding Wald statistics for testing linear restrictions on [nu] are shown to have a standard null [chi]2 limit distribution under quite general conditions. Notably, this outcome is irrespective of whether cointegrating relations are "strong" (when the difference between integration orders of observables and cointegrating errors exceeds 1/2), or "weak" (when that difference is less than 1/2), or when both cases are involved. Finite-sample properties are examined in a Monte Carlo study and an empirical example is presented.

Technical Details

RePEc Handle
repec:eee:econom:v:157:y:2010:i:2:p:492-511
Journal Field
Econometrics
Author Count
2
Added to Database
2026-02-02