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Robust Estimation of the non-Gaussian Dimension in Structural Linear Models

Miguel Cabello

arXiv 14 Dec 2022 · Econometrics

arXiv:2212.07263 · PDF · DOI · OpenAlex · Extracted main text

Abstract

Statistical identification of possibly non-fundamental SVARMA models requires structural errors: (i) to be an i.i.d process, (ii) to be mutually independent across components, and (iii) each of them must be non-Gaussian distributed. Hence, provided the first two requisites, it is crucial to evaluate the non-Gaussian identification condition. We address this problem by relating the non-Gaussian dimension of structural errors vector to the rank of a matrix built from the higher-order spectrum of reduced-form errors. This makes our proposal robust to the roots location of the lag polynomials, and generalizes the current procedures designed for the restricted case of a causal structural VAR model. Simulation exercises show that our procedure satisfactorily estimates the number of non-Gaussian components.

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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
1Guay, A (2021) Identification of structural vector autoregressions through higher unconditional moments1.000166100%
2Maxand, S (2020) Identification of independent structural shocks in the presence of multiple gaussian components1.00084100%
3Nordhausen, K., Oja, H., Tyler, D. E., and Virta, J (2017) Asymptotic and bootstrap tests for the dimension of the non-gaussian subspace1.00074100%
4Kleibergen, F. and Paap, R (2006) Generalized reduced rank tests using the singular value decomposition0.87462100%
5Amengual, D., Fiorentini, G., and Sentana, E (2022) Moment tests of independent components0.87452100%
6Velasco, C (2022) Identification and estimation of structural varma models using higher order dynamics0.87452100%
7Blanchard, O. J. and Quah, D (1989) The dynamic effects of aggregate demand and supply disturbances0.81142100%
8Blanchard, O. and Perotti, R (2002) An empirical characterization of the dynamic effects of changes in government spending and taxes on output0.81142100%
9Gouriéroux, C., Monfort, A., and Renne, J.-P (2020) Identification and estimation in non-fundamental structural varma models0.81142100%
10Comon, P (1994) Independent component analysis, a new concept?0.73732100%

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