Inference on the long-memory properties of time series with non-stationary volatility

C-Tier
Journal: Economics Letters
Year: 2016
Volume: 144
Issue: C
Pages: 80-84

Authors (2)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

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

Abstract

Time-varying volatility is often present in time series data and can have adverse effects when inferring about the persistence properties of examined series. This note analyzes the effects of such nonstationarity on periodogram-based inference for the fractional integration parameter. Based on asymptotic arguments and Monte Carlo simulations, we show that the log-periodogram regression estimator remains consistent, but has asymptotic distribution whose variance depends on the variation of the volatility of the series.

Technical Details

RePEc Handle
repec:eee:ecolet:v:144:y:2016:i:c:p:80-84
Journal Field
General
Author Count
2
Added to Database
2026-01-25