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Robust Inference on Infinite and Growing Dimensional Time Series Regression

Abhimanyu Gupta, Myung Hwan Seo

arXiv 20 Nov 2019 · Econometrics · publishedEconometrica (2023) · 7 citations (OpenAlex)

arXiv:1911.08637 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We develop a class of tests for time series models such as multiple regression with growing dimension, infinite-order autoregression and nonparametric sieve regression. Examples include the Chow test and general linear restriction tests of growing rank $p$. Employing such increasing $p$ asymptotics, we introduce a new scale correction to conventional test statistics which accounts for a high-order long-run variance (HLV) that emerges as $ p $ grows with sample size. We also propose a bias correction via a null-imposed bootstrap to alleviate finite sample bias without sacrificing power unduly. A simulation study shows the importance of robustifying testing procedures against the HLV even when $ p $ is moderate. The tests are illustrated with an application to the oil regressions in Hamilton (2003).

Citation extraction

49
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distinct cited
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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Sun, Y (2014) Fixed-smoothing asymptotics in a two-step GMM framework0.9568388%
2Hamilton, J. D (2003) What is an oil shock?0.92843100%
3Hong, Y. and H. White (1995) Consistent specification testing via nonparametric series regression0.92843100%
4Newey, W. K (1997) Convergence rates and asymptotic normality for series estimators0.8434375%
5Chen, X (2007) Large sample sieve estimation of semi-nonparametric models0.81142100%
6Goncalves, S. and L. Kilian (2007) Asymptotic and bootstrap inference for AR($$) processes with conditional heteroskedasticity0.7373367%
7Kline, P., R. Saggio, and M. Slvsten (2020) Leave-out estimation of variance components0.73732100%
8Andrews, D. W. K (1991) Heteroskedasticity and autocorrelation consistent covariance matrix estimation0.64422100%
9de Jong, R. M. and H. J. Bierens (1994) On the limit behavior of a chi-square type test if the number of conditional moments tested approaches infinity0.64422100%
10Gupta, A (2018) Nonparametric specification testing via the trinity of tests self0.64422100%

Showing the top 10 of 53 scored citations.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1SGMM: Stochastic Approximation to Generalized Method of Moments0.64422
2Testing linearity of spatial interaction functions à la Ramsey0.64422
3Linear Regression with Weak Exogeneity0.40511
4High Dimensional Time Series Regression Models: Applications to Statistical Learning Methods0.40511
5Wald inference on varying coefficients0.40511