Testing for unit roots in time series with level shifts

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Testing for unit roots in time series with level shifts

Tests for unit roots in univariate time series with level shifts are proposed and investigated The level shift is assumed to occur at a known time It may be a simple one time shift which can be captured by a dummy variable or it may have a more general form which can be modeled by some general nonlinear transition function There may also be more than one shift point and there may be other deter...

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The asymptotic distributions of Augmented-Dickey-Fuller (ADF) unit root tests for autoregressive processes with a unit or near-unit root are discussed in the presence of multiple stochastic level shifts of large size occurring independently in time. The distributions depend on a Brownian motion and a Poisson-type jump process. Due to the latter, tests based on standard critical values experienc...

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ژورنال

عنوان ژورنال: Allgemeines Statistisches Archiv

سال: 2001

ISSN: 0002-6018

DOI: 10.1007/s101820100045