Tests of the co-integration rank in VAR models in the presence of a possible break in trend at an unknown point

In this paper we consider the problem of testing for the co-integration rank of a vector autoregressive process in the case where a trend break may potentially be present in the data. It is known that un-modelled trend breaks can result in tests which are incorrectly sized under the null hypothesis...

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Bibliographic Details
Main Authors: Harris, David, Leybourne, Stephen J., Taylor, A.M. Robert
Format: Article
Language:English
Published: Elsevier 2016
Subjects:
Online Access:https://eprints.nottingham.ac.uk/31793/