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Goodness-of-Fit Testing for Copulas: A Distribution-Free Approach

Statistics Theory 2018-12-20 v2 Statistics Theory

Abstract

Consider a random sample from a continuous multivariate distribution function FF with copula CC. In order to test the null hypothesis that CC belongs to a certain parametric family, we construct an empirical process on the unit hypercube that converges weakly to a standard Wiener process under the null hypothesis. This process can therefore serve as a `tests generator' for asymptotically distribution-free goodness-of-fit testing of copula families. We also prove maximal sensitivity of this process to contiguous alternatives. Finally, we demonstrate through a Monte Carlo simulation study that our approach has excellent finite-sample performance, and we illustrate its applicability with a data analysis.

Keywords

Cite

@article{arxiv.1710.11504,
  title  = {Goodness-of-Fit Testing for Copulas: A Distribution-Free Approach},
  author = {Sami Umut Can and John H. J. Einmahl and Roger J. A. Laeven},
  journal= {arXiv preprint arXiv:1710.11504},
  year   = {2018}
}