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Asymptotic inference for non-invertible moving-average time series

Ngai Hang Chan, Ruey S. Tsay

Research output: Journal Publications and ReviewsRGC 21 - Publication in refereed journalpeer-review

Abstract

This paper is concerned with statistical inference of nonstationary and non-invertible autoregressive moving-average (ARMA) processes. It makes use of the fact that a derived process of an ARMA(p, q) model follows an AR(q) model with an autoregressive (AR) operator equivalent to the moving-average (MA) part of the original ARMA model. Asymptotic distributions of least squares estimates of MA parameters based on a constructed derived process are obtained as corresponding analogs of a nonstationary AR process. Extensions to the nearly non-invertible models are considered and the limiting distributions are obtained as functionals of stochastic integrals of Brownian motions and Ornstein-Uhlenbeck processes. For application, a two-stage procedure is proposed for testing unit roots in the MA polynomial. Examples are given to illustrate the application.
Original languageEnglish
Pages (from-to)1-17
JournalJournal of Time Series Analysis
Volume17
Issue number1
DOIs
Publication statusPublished - Mar 1996
Externally publishedYes

Bibliographical note

Publication details (e.g. title, author(s), publication statuses and dates) are captured on an “AS IS” and “AS AVAILABLE” basis at the time of record harvesting from the data source. Suggestions for further amendments or supplementary information can be sent to [email protected].

Research Keywords

  • Brownian motions
  • Derived processes
  • Difference-stationarity
  • Least squares
  • Near non-invertibility
  • Nonstationarity
  • Ornstein-Uhlenbeck processes
  • Stochastic integrals
  • Trend-stationarity

Policy Impact

  • Cited in Policy Documents

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