Testing for a unit root in the presence of stochastic volatility and leverage effect

C-Tier
Journal: Economic Modeling
Year: 2012
Volume: 29
Issue: 5
Pages: 2035-2038

Authors (3)

Li, Yong (Renmin University of China) Chong, Terence Tai-Leung (not in RePEc) Zhang, Jie (not in RePEc)

Score contribution per author:

0.335 = (α=2.01 / 3 authors) × 0.5x C-tier

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

Abstract

Previous studies have shown that the stationary and nonstationary time-varying volatilities have different implications on the unit root test. In this paper, we provide a Bayesian unit root test for an AR(1) model with stochastic volatility and leverage effect. Monte Carlo simulations show that the proposed Bayesian unit root test statistic achieves good finite sample properties and is robust to the stationarity of stochastic volatility.

Technical Details

RePEc Handle
repec:eee:ecmode:v:29:y:2012:i:5:p:2035-2038
Journal Field
General
Author Count
3
Added to Database
2026-01-25