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Nonlinear time series contiguous to AR(1) processes and a related efficient test for linearity

✍ Scribed by Sun Y. Hwang; I.V. Basawa


Publisher
Elsevier Science
Year
2001
Tongue
English
Weight
108 KB
Volume
52
Category
Article
ISSN
0167-7152

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✦ Synopsis


A class of nonlinear time series models contiguous to a ÿrst-order autoregressive process (AR(1)) is introduced. The local asymptotic normality of the log-likelihood ratio statistic for testing for linearity is established. An e cient test of linearity is then obtained and its asymptotic power function is derived. An extension to autoregressive conditionally heteroscedastic contiguous alternative models to AR(1) is also discussed and an e cient test of linearity is derived for this class also.