EconBase
← All papers

Testing and Dating Structural Changes in Copula-based Dependence Measures

Florian Stark, Sven Otto

arXiv 10 Nov 2020 · Econometrics · 2 citations (OpenAlex)

arXiv:2011.05036 · PDF · OpenAlex · Extracted main text

Abstract

This paper is concerned with testing and dating structural breaks in the dependence structure of multivariate time series. We consider a cumulative sum (CUSUM) type test for constant copula-based dependence measures, such as Spearman's rank correlation and quantile dependencies. The asymptotic null distribution is not known in closed form and critical values are estimated by an i.i.d. bootstrap procedure. We analyze size and power properties in a simulation study under different dependence measure settings, such as skewed and fat-tailed distributions. To date break points and to decide whether two estimated break locations belong to the same break event, we propose a pivot confidence interval procedure. Finally, we apply the test to the historical data of ten large financial firms during the last financial crisis from 2002 to mid-2013.

Citation extraction

37
references
60
in-text mentions
37
distinct cited
0
self-citations
8,040
main-text words

appendix boundary found by none_found · 100% of the source is main text. Read the extracted text to check this.

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
1Manner, H., F. Stark, and D. Wied (2019) Testing for Structural Breaks in Factor Copula Models1.000164100%
2Oh, D. H. and A. J. Patton (2013) Simulated Method of Moments Estimation for Copula-Based Multivariate Models0.92843100%
3Oh, D. H. and A. J. Patton (2017) Modeling Dependence in High Dimensions with Factor Copulas0.73732100%
4Liebscher, E (2014) Copula-Based Dependence Measures0.64422100%
5Schmid, F., R. Schmidt, T. Blumentritt, S. Gaier, and M. Ruppert (2010) Copula-Based Measures of Multivariate Association, in0.64422100%
6Engle, R. F (1982) Autoregressive Conditional Heteroscedasticity with Estimates of the Variance of United Kingdom Inflation0.51121100%
7Andrews, D. W (1993) Tests for Parameter Instability and Structural Change with Unknown Change Point0.40511100%
8Bai, J. and P. Perron (1998) Estimating and Testing Linear Models with Multiple Structural Changes0.40511100%
9Brown, R. L., J. Durbin, and J. M. Evans (1975) Techniques for Testing the Constancy of Regression Relationships Over Time0.40511100%
10Chow, G. C (1960) Tests of Equality Between Sets of Coefficients in Two Linear Regressions0.40511100%

Showing the top 10 of 37 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
1Break-Point Date Estimation for Nonstationary Autoregressive and Predictive Regression Models0.40511
2Local Gaussian copula inference with structural breaks: testing dependence predictability0.40511