English

Sample covariances of random-coefficient AR(1) panel model

Statistics Theory 2019-11-11 v2 Statistics Theory

Abstract

The present paper obtains a complete description of the limit distributions of sample covariances in N x n panel data when N and n jointly increase, possibly at different rate. The panel is formed by N independent samples of length n from random-coefficient AR(1) process with the tail distribution function of the random coefficient regularly varying at the unit root with exponent β\beta > 0. We show that for β\beta \in (0, 2) the sample covariances may display a variety of stable and non-stable limit behaviors with stability parameter depending on β\beta and the mutual increase rate of N and n.

Keywords

Cite

@article{arxiv.1810.11204,
  title  = {Sample covariances of random-coefficient AR(1) panel model},
  author = {Remigijus Leipus and Anne Philippe and Vytaute Pilipauskaite and Donatas Surgailis},
  journal= {arXiv preprint arXiv:1810.11204},
  year   = {2019}
}
R2 v1 2026-06-23T04:53:23.102Z