Tests for serial correlation of unknown form in dynamic least squares regression with wavelets

C-Tier
Journal: Economics Letters
Year: 2017
Volume: 155
Issue: C
Pages: 104-110

Authors (2)

Li, Meiyu (not in RePEc) Gençay, Ramazan

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

This paper extends the multi-scale serial correlation tests of Gençay and Signori (2015) for observable time series to unobservable errors of unknown forms in a linear dynamic regression model. Our tests directly build on the variance ratio of the sum of squared wavelet coefficients of residuals over the sum of squared residuals, utilizing the equal contribution of each frequency of a white noise process to its variance and delivering higher empirical power than parametric tests. Our test statistics converge to the standard normal distribution at the parametric rate under the null hypothesis, faster than the nonparametric test using kernel estimators of the spectrum.

Technical Details

RePEc Handle
repec:eee:ecolet:v:155:y:2017:i:c:p:104-110
Journal Field
General
Author Count
2
Added to Database
2026-01-25