English

Robust Estimation of the non-Gaussian Dimension in Structural Linear Models

Econometrics 2023-09-26 v2

Abstract

Statistical identification of possibly non-fundamental SVARMA models requires structural errors: (i) to be an i.i.d process, (ii) to be mutually independent across components, and (iii) each of them must be non-Gaussian distributed. Hence, provided the first two requisites, it is crucial to evaluate the non-Gaussian identification condition. We address this problem by relating the non-Gaussian dimension of structural errors vector to the rank of a matrix built from the higher-order spectrum of reduced-form errors. This makes our proposal robust to the roots location of the lag polynomials, and generalizes the current procedures designed for the restricted case of a causal structural VAR model. Simulation exercises show that our procedure satisfactorily estimates the number of non-Gaussian components.

Keywords

Cite

@article{arxiv.2212.07263,
  title  = {Robust Estimation of the non-Gaussian Dimension in Structural Linear Models},
  author = {Miguel Cabello},
  journal= {arXiv preprint arXiv:2212.07263},
  year   = {2023}
}
R2 v1 2026-06-28T07:34:35.453Z