ECO 2006-7 Copertina.indd

نویسندگان

  • CARSTEN TRENKLER
  • PENTTI SAIKKONEN
  • Carsten Trenkler
  • Pentti Saikkonen
چکیده

A test for the cointegrating rank of a vector autoregressive (VAR) process with a possible shift and broken linear trend is proposed. The break point is assumed to be known. The setup is a VAR process for cointegrated variables. The tests are not likelihood ratio tests but the deterministic terms including the broken trends are removed first by a GLS procedure and a likelihood ratio type test is applied to the adjusted series. The asymptotic null distribution of the test is derived and it is shown by a Monte Carlo experiment that the test has better small sample properties in many cases than a corresponding Gaussian likelihood ratio test for the cointegrating rank.

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تاریخ انتشار 2006