Cointegration in Small Samples: Empirical Percentiles, Drifting Moments and Customized Testing.

B-Tier
Journal: Oxford Bulletin of Economics and Statistics
Year: 1990
Volume: 52
Issue: 3
Pages: 303-15

Authors (2)

Score contribution per author:

1.009 = (α=2.02 / 2 authors) × 1.0x B-tier

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

Abstract

Empirical distributions of the studentized Augmented Dicky-Fuller cointegration statistic for data generated by simulation are analyzed for small samples. Empirical 1 percent, 5 percent and 10 percent fractiles are tabulated for various sample sizes and various numbers of regressors. It is found that means, standard deviation, moment coefficients of skewness and moment coefficients of kurtosis can be approximated by a function of an inverse of the sample size. A more precise technique of testing cointegration in small samples is suggested, which requires formulating a separate simulation model for generating critical values of a cointegration for particular empirical models. This is exemplified by testing cointegration in a model describing the black market foreign exchange rate for Poland. Copyright 1990 by Blackwell Publishing Ltd

Technical Details

RePEc Handle
repec:bla:obuest:v:52:y:1990:i:3:p:303-15
Journal Field
General
Author Count
2
Added to Database
2026-01-25