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Goodness-of-fit tests for extended Log-GARCH models

Statistics Theory 2016-06-07 v2 Statistics Theory

Abstract

This paper studies goodness of fit tests and specification tests for an extension of the log-GARCH model which is stable by scaling. A Lagrange-Multiplier test is derived for testing the null assumption of extended log-GARCH against more general formulations including the Exponential GARCH (EGARCH). The null assumption of an EGARCH is also tested. Portmanteau goodness-of-fit tests are developed for the extended log-GARCH. Simulations illustrating the theoretical results and an application to real financial data are proposed.

Keywords

Cite

@article{arxiv.1601.05560,
  title  = {Goodness-of-fit tests for extended Log-GARCH models},
  author = {Christian Francq and Olivier Wintenberger and Jean-Michel Zakoïan},
  journal= {arXiv preprint arXiv:1601.05560},
  year   = {2016}
}