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Main Authors: Huang, Hsueh-Han, Ing, Ching-Kang, Yu, Shu-Hui
Format: Preprint
Published: 2023
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Online Access:https://arxiv.org/abs/2301.07476
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author Huang, Hsueh-Han
Ing, Ching-Kang
Yu, Shu-Hui
author_facet Huang, Hsueh-Han
Ing, Ching-Kang
Yu, Shu-Hui
contents We establish a negative moment bound for the sample autocovariance matrix of a stationary process driven by conditional heteroscedastic errors. This moment bound enables us to asymptotically express the mean squared prediction error (MSPE) of the least squares predictor as the sum of three terms related to model complexity, model misspecification, and conditional heteroscedasticity. A direct application of this expression is the development of a model selection criterion that can asymptotically identify the best (in the sense of MSPE) subset AR model in the presence of misspecification and conditional heteroscedasticity. Finally, numerical simulations are conducted to confirm our theoretical results.
format Preprint
id arxiv_https___arxiv_org_abs_2301_07476
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Negative Moment Bounds for Sample Autocovariance Matrices of Stationary Processes Driven by Conditional Heteroscedastic Errors and Their Applications
Huang, Hsueh-Han
Ing, Ching-Kang
Yu, Shu-Hui
Statistics Theory
We establish a negative moment bound for the sample autocovariance matrix of a stationary process driven by conditional heteroscedastic errors. This moment bound enables us to asymptotically express the mean squared prediction error (MSPE) of the least squares predictor as the sum of three terms related to model complexity, model misspecification, and conditional heteroscedasticity. A direct application of this expression is the development of a model selection criterion that can asymptotically identify the best (in the sense of MSPE) subset AR model in the presence of misspecification and conditional heteroscedasticity. Finally, numerical simulations are conducted to confirm our theoretical results.
title Negative Moment Bounds for Sample Autocovariance Matrices of Stationary Processes Driven by Conditional Heteroscedastic Errors and Their Applications
topic Statistics Theory
url https://arxiv.org/abs/2301.07476