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Information Matrix Test, Parameter Heterogeneity and ARCH: A Synthesis

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Author Info
Bera, Anil K
Lee, Sangkyu

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Abstract

The authors apply the White information matrix test to the linear regression model with autocorrelated errors. A special case of one component of the test is found to be identical to the En gle Lagrange multiplier test for autoregressive conditional heteroskedasticity. Given A. D. Chesher's interpretation of the information matrix test as a test for parameter heterogeneity, this establishes a connection among the information matrix test, autoregressive conditional heteroskedasticity, and parameter variation. This also enables the authors to specify conditional heteroskedasticity in a m ore general and convenient way. Other interesting by-products of their analysis are tests for the variation in conditional and static skewn ess that the authors call tests for "heterocliticity." Copyright 1993 by The Review of Economic Studies Limited.

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Publisher Info
Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 60 (1993)
Issue (Month): 1 (January)
Pages: 229-40
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Handle: RePEc:bla:restud:v:60:y:1993:i:1:p:229-40

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  1. Marwan Elkhoury, 2005. "A Time-Varying Parameter Model of A Monetary Policy Rule for Switzerland. The Case of the Lucas and Friedman Hypothesis," HEI Working Papers 01-2006, Economics Section, The Graduate Institute of International Studies. [Downloadable!]
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