Nonparametric specification testing for nonlinear time series with nonstationarity

Jiti Gao, Maxwell King, Zudi Lu, Dag Tjøstheim

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

41 Citations (Scopus)

Abstract

This paper considers a nonparametric time series regression model with a nonstationary regressor. We construct a nonparametric test for whether the regression is of a known parametric form indexed by a vector of unknown parameters. We establish the asymptotic distribution of the proposed test statistic. Both the setting and the results differ from earlier work on nonparametric time series regression with stationarity. In addition, we develop a bootstrap simulation scheme for the selection of suitable bandwidth parameters involved in the kernel test as well as the choice of simulated critical values. An example of implementation is given to show that the proposed test works in practice. © 2009 Cambridge University Press.
Original languageEnglish
Pages (from-to)1869-1892
JournalEconometric Theory
Volume25
Issue number6
DOIs
Publication statusPublished - Dec 2009
Externally publishedYes

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