Recursive right-tailed unit root tests for an explosive asset price bubble

In this article, we compare the local asymptotic and finite sample power of two recently proposed recursive right-tailed Dickey–Fuller-type tests for an explosive rational bubble in asset prices. It is shown that the power of the two tests can differ substantially depending on the location of the ex...

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Bibliographic Details
Main Authors: Harvey, David I., Leybourne, Stephen J., Sollis, Robert
Format: Article
Published: Oxford University Press 2015
Subjects:
Online Access:https://eprints.nottingham.ac.uk/32667/