Testing explosive bubbles with time-varying volatility

This paper considers the problem of testing for an explosive bubble in financial data in the presence of time-varying volatility. We propose a weighted least squares-based variant of the Phillips, Wu and Yu (2011) test for explosive autoregressive behaviour. We find that such an approach has appeali...

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Bibliographic Details
Main Authors: Harvey, David I., Leybourne, Stephen J., Zu, Yang
Format: Article
Language:English
Published: Taylor & Francis 2018
Subjects:
Online Access:https://eprints.nottingham.ac.uk/54702/