EconBase
← All papers

Local Gaussian copula inference with structural breaks: testing dependence predictability

Alexander Mayer, Tatsushi Oka, Dominik Wied

arXiv 2 Mar 2026 · Econometrics

arXiv:2603.01721 · PDF · DOI · OpenAlex · Extracted main text

Abstract

We propose a score test for dependence predictability in conditional copulas that is robust to temporal instabilities. Our semiparametric procedure accommodates flexible dynamics in the marginal processes and remains agnostic about the copula family by leveraging distributional regression techniques together with a local Gaussian representation of the copula link function. We derive the limiting distribution of our test statistic and propose a resampling scheme based on recent results for the moving block bootstrap of multi-stage estimators. Monte Carlo simulations and an empirical application illustrate the finite-sample performance of our methods.

Citation extraction

65
references
128
in-text mentions
65
distinct cited
4
self-citations
9,176
main-text words

appendix boundary found by appendix_command · 54% 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
1Patton, A. J (2006) Modelling asymmetric exchange rate dependence1.00053100%
2Neumeyer, N., M. Omelka, and S. Hudecová (2019) A copula approach for dependence modeling in multivariate nonparametric time series0.9285380%
3Mayer, A., D. Wied, and V. Troster (2025) Quantile Granger Causality in the Presence of Instability self0.92844100%
4Oh, D. H. and A. J. Patton (2017) Modeling dependence in high dimensions with factor copulas0.92843100%
5Oh, D. H. and A. J. Patton (2013) Simulated Method of Moments Estimation for Copula-Based Multivariate Models0.92843100%
6Mayer, A. and D. Wied (2023) Estimation and inference in factor copula models with exogenous covariates self0.8434475%
7Goncalves, S., U. Hounyo, A. J. Patton, and K. Sheppard (2023) Bootstrapping two-stage quasi-maximum likelihood estimators of time series models0.84333100%
8Nasri, B. R., B. N. Rémillard, and T. Bahraoui (2022) Change-point problems for multivariate time series using pseudo-observations0.84333100%
9Rossi, B (2005) Optimal Tests for Nested Model Selection with Underlying Parameter Instability0.84333100%
10Sowell, F (1996) Optimal Tests for Parameter Instability in the Generalized Method of Moments Framework0.84333100%

Showing the top 10 of 65 scored citations.