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Robust Estimation in Network Vector Autoregression with Nonstationary Regressors

Christis Katsouris

arXiv 8 Jan 2024 · Econometrics

arXiv:2401.04050 · PDF · DOI · OpenAlex · Extracted main text

Abstract

This article studies identification and estimation for the network vector autoregressive model with nonstationary regressors. In particular, network dependence is characterized by a nonstochastic adjacency matrix. The information set includes a stationary regressand and a node-specific vector of nonstationary regressors, both observed at the same equally spaced time frequencies. Our proposed econometric specification correponds to the NVAR model under time series nonstationarity which relies on the local-to-unity parametrization for capturing the unknown form of persistence of these node-specific regressors. Robust econometric estimation is achieved using an IVX-type estimator and the asymptotic theory analysis for the augmented vector of regressors is studied based on a double asymptotic regime where both the network size and the time dimension tend to infinity.

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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
1Zhu, X., Pan, R., Li, G., Liu, Y., Wang, H., et al (2017) Network vector autoregression1.00083100%
2Armillotta, M. and Fokianos, K (2022) Nonlinear network autoregression0.84333100%
3Phillips, P. C. B. and Magdalinos, T (2009) Econometric inference in the vicinity of unity0.81142100%
4Magdalinos, T (2021) Least squares and ivx limit theory in systems of predictive regressions with garch innovations0.81142100%
5Katsouris, C (2023) Statistical estimation for covariance structures with tail estimates using nodewise quantile predictive regression models self0.7373367%
6Härdle, W. K., Wang, W., and Yu, L (2016) Tenet: Tail-event driven network risk0.73732100%
7Kostakis, A., Magdalinos, T., and Stamatogiannis, M. P (2015) Robust econometric inference for stock return predictability0.73732100%
8Phillips, P. C. B. and Magdalinos, T (2007) Limit theory for moderate deviations from a unit root0.73732100%
9Agosto, A., Cavaliere, G., Kristensen, D., and Rahbek, A (2016) Modeling corporate defaults: Poisson autoregressions with exogenous covariates (parx)0.64422100%
10Chen, C. Y.-H., Härdle, W. K., and Okhrin, Y (2019) Tail event driven networks of sifis0.64422100%

Showing the top 10 of 84 scored citations.