Quasi-likelihood ratio tests for cointegration, cobreaking, and cotrending

We consider a set of variables with two types of non-stationary features, stochastic trends and broken linear trends. We develop tests that can determine whether there is a linear combination of these variables under which the non-stationary features can be canceled out. The first test can determine...

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Detalles Bibliográficos
Autores: Carrión i Silvestre, Josep Lluís, Kim, Dukpa
Tipo de recurso: artículo
Estado:Versión aceptada para publicación
Fecha de publicación:2019
País:España
Institución:Varias* (Consorci de Biblioteques Universitáries de Catalunya, Centre de Serveis Científics i Acadèmics de Catalunya)
Repositorio:Recercat. Dipósit de la Recerca de Catalunya
OAI Identifier:oai:recercat.cat:2445/135559
Acceso en línea:https://hdl.handle.net/2445/135559
Access Level:acceso abierto
Palabra clave:Integració econòmica
Programació lineal
Anàlisi estocàstica
Mètode de Montecarlo
Economic integration
Linear programming
Analyse stochastique
Monte Carlo method
Descripción
Sumario:We consider a set of variables with two types of non-stationary features, stochastic trends and broken linear trends. We develop tests that can determine whether there is a linear combination of these variables under which the non-stationary features can be canceled out. The first test can determine whether stochastic trends can be eliminated and thus whether cointegration holds, regardless of whether structural breaks in linear trends are eliminated. The second test can determine whether both stochastic trends and breaks in linear trends are simultaneously removed and thus whether cointegration and cobreaking simultaneously hold. The third test can determine whether not only breaks in linear trends but also linear trends themselves are eliminated along with stochastic trends and thus whether both cointegration and cotrending hold.