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Detecting long-range dependence for time-varying linear models

Lujia Bai, Weichi Wu

arXiv 15 Oct 2021 · Mathematics — Statistics Theory · publishedBernoulli (2024) · 1 citations (OpenAlex)

arXiv:2110.08089 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We consider the problem of testing for long-range dependence in time-varying coefficient regression models, where the covariates and errors are locally stationary, allowing complex temporal dynamics and heteroscedasticity. We develop KPSS, R/S, V/S, and K/S-type statistics based on the nonparametric residuals. Under the null hypothesis, the local alternatives as well as the fixed alternatives, we derive the limiting distributions of the test statistics. As the four types of test statistics could degenerate when the time-varying mean, variance, long-run variance of errors, covariates, and the intercept lie in certain hyperplanes, we show the bootstrap-assisted tests are consistent under both degenerate and non-degenerate scenarios. In particular, in the presence of covariates the exact local asymptotic power of the bootstrap-assisted tests can enjoy the same order as that of the classical KPSS test of long memory for strictly stationary series. The asymptotic theory is built on a new Gaussian approximation technique for locally stationary long-memory processes with short-memory covariates, which is of independent interest. The effectiveness of our tests is demonstrated by extensive simulation studies and real data analysis.

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65
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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
1Wu, W. and Zhou, Z (2018) Simultaneous quantile inference for non-stationary long-memory time series self1.00053100%
2Wu, W. and Zhou, Z (2018) Gradient-based structural change detection for nonstationary time series M-estimation self0.8434375%
3Dette, H., Preuss, P., and Sen, K (2017) Detecting long-range dependence in non-stationary time series0.84333100%
4Ferreira, G., Piña, N., and Porcu, E (2018) Estimation of slowly time-varying trend function in long memory regression models0.84333100%
5Wu, W. B. and Shao, X (2006) Invariance principles for fractionally integrated nonlinear processes self0.84333100%
6Zhou, Z. and Wu, W. B (2010) Simultaneous inference of linear models with time varying coefficients self0.83817659%
7Fan, J. and Zhang, W (2000) Simultaneous confidence bands and hypothesis testing in varying-coefficient models0.81142100%
8Wu, W. B. and Zhou, Z (2011) Gaussian approximations for non-stationary multiple time series self0.7374350%
9Beran, J., Feng, Y., Ghosh, S., and Kulik, R (2013) Long-Memory Processes0.6443267%
10Dette, H. and Wu, W (2019) Detecting relevant changes in the mean of nonstationary processes—a mass excess approach self0.6443267%

Showing the top 10 of 65 scored citations.