Long Memory versus Stochastic Trend

نویسندگان

  • Alexander Aue
  • Lajos Horváth
  • Josef Steinebach
چکیده

We study the limiting behaviour of the prominent V/S and R/S test statistics, aimed at detecting long–range dependence, under the presence of a stochastic trend, which is given by cumulative random shocks. Depending on the size of these shocks, the asymptotic distribution is characterized either solely by the stochastic trend, or solely by the error sequence, or it is a mixture of both random components. Moreover, we also derive the rate of convergence to the limit. AMS 2000 Subject Classification: Primary 62M10; Secondary 91B70

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تاریخ انتشار 2005