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Size and Power of the Error Correction Model (ECM) of Cointegration Tests. A Bootstrap Approach
Lund University.ORCID iD: 0000-0002-8425-3990
Lund University. (Statistik / LNUC)ORCID iD: 0000-0002-3416-5896
1998 (English)In: Oxford Bulletin of Economics and Statistics, ISSN 0305-9049, E-ISSN 1468-0084, Vol. 60, no 2, p. 249-255Article in journal (Refereed) Published
Abstract [en]

The size and power of the ECM cointegration test are investigated by using the ‘bootstrap critical values’. The purpose of this paper is to show the ability of the bootstrap technique to produce critical values which are much more accurate than the asymptotic ones. The properties of the test have been studied, using Monte Carlo methods, for three different data generating processes. As regards the size of the test, we find that the ECM cointegration test together with the bootstrap critical values perform better than the ECM cointegration test based on the asymptotic critical values. While as regards the power of the tests, the results prove to be similar for the different versions.

Place, publisher, year, edition, pages
John Wiley & Sons, 1998. Vol. 60, no 2, p. 249-255
National Category
Probability Theory and Statistics
Research subject
Statistics/Econometrics
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URN: urn:nbn:se:lnu:diva-23183DOI: 10.1111/1468-0084.00097OAI: oai:DiVA.org:lnu-23183DiVA, id: diva2:580500
Available from: 2012-12-22 Created: 2012-12-22 Last updated: 2025-05-06Bibliographically approved

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Mantalos, PanagiotisShukur, Ghazi

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