Spurious Regression

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Spurious Regression

The spurious regression phenomenon in least squares occurs for a wide range of data generating processes, such as driftless unit roots, unit roots with drift, long memory, trend and brokentrend stationarity. Indeed, spurious regressions have played a fundamental role in the building of modern time series econometrics and have revolutionized many of the procedures used in applied macroeconomics....

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A test strategy consisting of a two-step application of a Lagrange Multiplier test was recently suggested as a device to reveal spatial nonstationarity, spurious spatial regression and spatial cointegration. The present paper generalises the test procedure by incorporating control for biased test values emerging from unobserved heteroscedasticity. Using Monte Carlo simulation, the behaviour of ...

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ژورنال

عنوان ژورنال: Journal of Probability and Statistics

سال: 2009

ISSN: 1687-952X,1687-9538

DOI: 10.1155/2009/802975