Specification tests of parametric dynamic conditional quantiles

A-Tier
Journal: Journal of Econometrics
Year: 2010
Volume: 159
Issue: 1
Pages: 209-221

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

This article proposes omnibus specification tests of parametric dynamic quantile models. In contrast to the existing procedures, we allow for a flexible specification, where a possible continuum of quantiles is simultaneously specified under fairly weak conditions on the serial dependence in the underlying data-generating process. Since the null limit distribution of tests is not pivotal, we propose a subsampling approximation of the asymptotic critical values. A Monte Carlo study shows that the asymptotic results provide good approximations for small sample sizes. Finally, an application suggests that our methodology is a powerful alternative to standard backtesting procedures in evaluating market risk.

Technical Details

RePEc Handle
repec:eee:econom:v:159:y:2010:i:1:p:209-221
Journal Field
Econometrics
Author Count
2
Added to Database
2026-01-25