Confidence Sets for the Emergence, Collapse, and Recovery Dates of a Bubble

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Main Authors: Kurozumi, Eiji, Skrobotov, Anton
Format: Preprint
Published: 2025
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author Kurozumi, Eiji
Skrobotov, Anton
author_facet Kurozumi, Eiji
Skrobotov, Anton
contents We propose constructing confidence sets for the emergence, collapse, and recovery dates of a bubble separately by inverting tests for the location of the break date. We examine both likelihood ratio-type tests and the Elliott-Muller-type (2007) tests for detecting break locations. The limiting distributions of these tests are derived under the null hypothesis, and their asymptotic consistency under the alternative is established. Finite-sample properties are evaluated through Monte Carlo simulations. The results indicate that combining different types of tests effectively controls the empirical coverage rate while maintaining a reasonably small length of the confidence set.
format Preprint
id arxiv_https___arxiv_org_abs_2511_16172
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Confidence Sets for the Emergence, Collapse, and Recovery Dates of a Bubble
Kurozumi, Eiji
Skrobotov, Anton
Econometrics
Methodology
We propose constructing confidence sets for the emergence, collapse, and recovery dates of a bubble separately by inverting tests for the location of the break date. We examine both likelihood ratio-type tests and the Elliott-Muller-type (2007) tests for detecting break locations. The limiting distributions of these tests are derived under the null hypothesis, and their asymptotic consistency under the alternative is established. Finite-sample properties are evaluated through Monte Carlo simulations. The results indicate that combining different types of tests effectively controls the empirical coverage rate while maintaining a reasonably small length of the confidence set.
title Confidence Sets for the Emergence, Collapse, and Recovery Dates of a Bubble
topic Econometrics
Methodology
url https://arxiv.org/abs/2511.16172