AGGREGATION OF THE RANDOM COEFFICIENT GLARCH(1,1) PROCESS

B-Tier
Journal: Econometric Theory
Year: 2010
Volume: 26
Issue: 2
Pages: 406-425

Authors (3)

Giraitis, Liudas (Queen Mary University of Londo...) Leipus, Remigijus (not in RePEc) Surgailis, Donatas (not in RePEc)

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

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

Abstract

The paper discusses contemporaneous aggregation of the Linear ARCH (LARCH) model as defined in (1), which was introduced in Robinson (1991) and studied in Giraitis, Robinson, and Surgailis (2000) and other works. We show that the limiting aggregate of the (G)eneralized LARCH(1,1) process in (3)–(4) with random Beta distributed coefficient β exhibits long memory. In particular, we prove that squares of the limiting aggregated process have slowly decaying correlations and their partial sums converge to a self-similar process of a new type.

Technical Details

RePEc Handle
repec:cup:etheor:v:26:y:2010:i:02:p:406-425_10
Journal Field
Econometrics
Author Count
3
Added to Database
2026-01-25