Inference on common trends in functional time series

Fuente: arXiv
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Autores principales: Nielsen, Morten Ørregaard, Seo, Won-Ki, Seong, Dakyung
Formato: Preprint
Publicado: 2023
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author Nielsen, Morten Ørregaard
Seo, Won-Ki
Seong, Dakyung
author_facet Nielsen, Morten Ørregaard
Seo, Won-Ki
Seong, Dakyung
contents We study statistical inference on unit roots and cointegration for time series in a Hilbert space. We develop statistical inference on the number of common stochastic trends embedded in the time series, i.e., the dimension of the nonstationary subspace. We also consider tests of hypotheses on the nonstationary and stationary subspaces themselves. The Hilbert space can be of an arbitrarily large dimension, and our methods remain asymptotically valid even when the time series of interest takes values in a subspace of possibly unknown dimension. This has wide applicability in practice; for example, to cointegrated vector time series that are either high-dimensional or of finite dimension, to high-dimensional factor models that include a finite number of nonstationary factors, to cointegrated curve-valued (or function-valued) time series, and to nonstationary dynamic functional factor models. To illustrate our methods, we include two empirical examples.
format Preprint
id arxiv_https___arxiv_org_abs_2312_00590
institution arXiv
publishDate 2023
record_format arxiv
spellingShingle Inference on common trends in functional time series
Nielsen, Morten Ørregaard
Seo, Won-Ki
Seong, Dakyung
Econometrics
Statistics Theory
primary 62G99, 62H99, secondary 62H25, 62M10, 91B84
We study statistical inference on unit roots and cointegration for time series in a Hilbert space. We develop statistical inference on the number of common stochastic trends embedded in the time series, i.e., the dimension of the nonstationary subspace. We also consider tests of hypotheses on the nonstationary and stationary subspaces themselves. The Hilbert space can be of an arbitrarily large dimension, and our methods remain asymptotically valid even when the time series of interest takes values in a subspace of possibly unknown dimension. This has wide applicability in practice; for example, to cointegrated vector time series that are either high-dimensional or of finite dimension, to high-dimensional factor models that include a finite number of nonstationary factors, to cointegrated curve-valued (or function-valued) time series, and to nonstationary dynamic functional factor models. To illustrate our methods, we include two empirical examples.
title Inference on common trends in functional time series
topic Econometrics
Statistics Theory
primary 62G99, 62H99, secondary 62H25, 62M10, 91B84
url https://arxiv.org/abs/2312.00590