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Bootstrapping Nonstationary Autoregressive Processes with Predictive Regression Models

Christis Katsouris

arXiv 26 Jul 2023 · Econometrics

arXiv:2307.14463 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We establish the asymptotic validity of the bootstrap-based IVX estimator proposed by Phillips and Magdalinos (2009) for the predictive regression model parameter based on a local-to-unity specification of the autoregressive coefficient which covers both nearly nonstationary and nearly stationary processes. A mixed Gaussian limit distribution is obtained for the bootstrap-based IVX estimator. The statistical validity of the theoretical results are illustrated by Monte Carlo experiments for various statistical inference problems.

Citation extraction

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appendix boundary found by appendix_titled_section at “Supplementary Limit Theorems.” · 68% 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
1Phillips, P. C. B. and Magdalinos, T (2009) Econometric inference in the vicinity of unity1.00074100%
2Paparoditis, E. and Politis, D. N (2003) Residual-based block bootstrap for unit root testing0.9285480%
3Phillips, P. C. B (1987) Time series regression with a unit root0.9285380%
4Bose, A (1988) Edgeworth correction by bootstrap in autoregressions0.92843100%
5Georgiev, I., Demetrescu, M., Rodrigues, P. M., and Taylor, A (2021) Extensions to ivx methods of inference for return predictability0.92843100%
6Phillips, P. C. B (1987) Towards a unified asymptotic theory for autoregression0.87452100%
7Li, H. and Xiao, Z (2001) Bootstrapping time series regressions with integrated processes0.7373367%
8Chan, N. H. and Wei, C.-Z (1987) Asymptotic inference for nearly nonstationary ar (1) processes0.73732100%
9Phillips, P. C. B. and Magdalinos, T (2007) Limit theory for moderate deviations from a unit root0.73732100%
10Phillips, P. C. B. and Hansen, B. E (1990) Statistical inference in instrumental variables regression with i (1) processes0.64422100%

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Cited by, within the corpus

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

Citing paperIntensityMentionsSections
1Limit Theory under Network Dependence and Nonstationarity0.40511
2Optimal Estimation Methodologies for Panel Data Regression Models0.00011