Estimation for nearly unit root processes with ARFIMA-GARCH errors

Author:

Chen Lingju,Xie Bihua

Abstract

Abstract In this paper, we introduce a nearly unit root processes with ARFIMA(p; d; q)-GARCH(l;m) errors, and establish an asymptotic theorem for the autoregressive coefficient estimation of the proposed model under very mild conditions. It’s shown that the DF-type tests are functionals of the Ornstein-Uhlenbeck process rather than those of standard Brownian motions in the unit root case.

Publisher

IOP Publishing

Subject

General Physics and Astronomy

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