EconBase
← All papers

Bootstrap Adaptive Lasso Solution Path Unit Root Tests

Martin C. Arnold, Thilo Reinschlüssel

arXiv 12 Sep 2024 · Statistics — Methodology

arXiv:2409.07859 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose sieve wild bootstrap analogues to the adaptive Lasso solution path unit root tests of Arnold and Reinschl\"ussel (2024) arXiv:2404.06205 to improve finite sample properties and extend their applicability to a generalised framework, allowing for non-stationary volatility. Numerical evidence shows the bootstrap to improve the tests' precision for error processes that promote spurious rejections of the unit root null, depending on the detrending procedure. The bootstrap mitigates finite-sample size distortions and restores asymptotically valid inference when the data features time-varying unconditional variance. We apply the bootstrap tests to real residential property prices of the top six Eurozone economies and find evidence of stationarity to be period-specific, supporting the conjecture that exuberance in the housing market characterises the development of Euro-era residential property prices in the recent past.

Citation extraction

47
references
116
in-text mentions
47
distinct cited
1
self-citations
7,545
main-text words

appendix boundary found by appendix_command · 85% 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
1Arnold, Martin C., Reinschlüssel, Thilo (2024) Adaptive Unit Root Inference in Autoregressions using the Lasso Solution Path self1.000175100%
2Cavaliere, Giuseppe, Taylor, A. M. Robert (2008) BOOTSTRAP UNIT ROOT TESTS FOR TIME SERIES WITH NONSTATIONARY VOLATILITY1.000114100%
3Cavaliere, Giuseppe, Taylor, A. M. Robert (2009) Bootstrap $M$ Unit Root Tests1.00084100%
4Cavaliere, Giuseppe, Taylor, A. M. Robert (2007) Testing for unit roots in time series models with non-stationary volatility1.00053100%
5Cavaliere, Giuseppe, Taylor, A. M. Robert (2009) HETEROSKEDASTIC TIME SERIES WITH A UNIT ROOT1.00053100%
6Cavaliere, Giuseppe, Phillips, Peter C. B., Smeekes, Stephan, Taylor… (2015) Lag Length Selection for Unit Root Tests in the Presence of Nonstationary Volatility0.87452100%
7Efron, Bradley, Hastie, Trevor, Johnstone, Iain, Tibshirani, Robert (2004) Least Angle Regression0.84333100%
8Schmidt, Peter, Phillips, Peter C. B (1992) LM tests for a unit root in the presence of deterministic trends0.73710340%
9Ng, Serena, Perron, Pierre (2001) Lag Length Selection and the Construction of Unit Root Tests with Good Size and Power0.73732100%
10Chang, Yoosoon, Park, Joon Y (2003) A sieve bootstrap for the test of a unit root0.64422100%

Showing the top 10 of 47 scored citations.