EconBase
← All papers

Testing for threshold effects in the TARMA framework

Greta Goracci, Simone Giannerini, Kung-Sik Chan, Howell Tong

arXiv 25 Mar 2021 · Statistics — Methodology · publishedStatistica Sinica (2021) · 1 citations (OpenAlex)

arXiv:2103.13977 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We present supremum Lagrange Multiplier tests to compare a linear ARMA specification against its threshold ARMA extension. We derive the asymptotic distribution of the test statistics both under the null hypothesis and contiguous local alternatives. Moreover, we prove the consistency of the tests. The Monte Carlo study shows that the tests enjoy good finite-sample properties, are robust against model mis-specification and their performance is not affected if the order of the model is unknown. The tests present a low computational burden and do not suffer from some of the drawbacks that affect the quasi-likelihood ratio setting. Lastly, we apply our tests to a time series of standardized tree-ring growth indexes and this can lead to new research in climate studies.

Citation extraction

34
references
60
in-text mentions
34
distinct cited
17
self-citations
9,012
main-text words

appendix boundary found by appendix_command · 69% 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
1Ling, S. and Tong, H (2005) Testing for a linear MA model against threshold MA models self0.9568588%
2Chan, K.-S (1990) Testing for threshold autoregression self0.92843100%
3Li, G. and Li, W (2011) Testing a linear time series model against its threshold extension0.84310560%
4Chan, K. S (1991) Percentage points of likelihood ratio tests for threshold autoregression self0.73732100%
5Andrews, D (2003) Tests for parameter instability and structural change with unknown change point: A corrigendum0.64422100%
6Chan, K.-S. and Goracci, G (2019) On the ergodicity of first-order threshold autoregressive moving-average processes self0.64422100%
7Chan, K.-S., Giannerini, S., Goracci, G., and Tong, H (2020) Unit-root test within a threshold ARMA framework self0.64422100%
8Goracci, G., Giannerini, S., Chan, K.-S., and Tong, H (2021) Supplement to: Testing for threshold effects in arma models self0.64422100%
9Tong, H (2011) Threshold models in time series analysis–30 years on self0.51121100%
10Billingsley, P (1968) Convergence of probability measure0.40511100%

Showing the top 10 of 34 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
1Testing for Threshold Effects in Presence of Heteroskedasticity and Measurement Error with an application to Italian Strikes0.84344
2Robust estimation for Threshold Autoregressive Moving-Average models0.64432
3Testing for threshold regulation in presence of measurement error with an application to the PPP hypothesis0.64422