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Markov regime switching models have been used in numerous empirical studies in economics and finance. However, the asymptotic distribution of the likelihood ratio test statistic for testing the number of regimes in Markov regime switching…

Econometrics · Economics 2018-01-31 Hiroyuki Kasahara , Katsumi Shimotsu

In this paper we consider the problem of detecting a change in the parameters of an autoregressive process, where the moments of the innovation process do not necessarily exist. An empirical likelihood ratio test for the existence of a…

Statistics Theory · Mathematics 2016-12-07 Fumiya Akashi , Holger Dette , Yan Liu

Change point analysis has become an important research topic in many fields of applications. Several research work has been carried out to detect changes and its locations in time series data. In this paper, a nonparametric method based on…

Methodology · Statistics 2017-11-28 Ramadha D. Piyadi Gamage , Wei Ning

This paper considers maximum likelihood (ML) estimation in a large class of models with hidden Markov regimes. We investigate consistency of the ML estimator and local asymptotic normality for the models under general conditions which allow…

Statistics Theory · Mathematics 2021-12-07 Demian Pouzo , Zacharias Psaradakis , Martin Sola

This paper develops tests of the null hypothesis of linearity in the context of autoregressive models with Markov-switching means and variances. These tests are robust to the identification failures that plague conventional likelihood-based…

Methodology · Statistics 2017-01-03 Jean-Marie Dufour , Richard Luger

This paper deals with the problem of asymptotically optimal detection of changes in regime-switching stochastic models. We need to divide the whole obtained sample of data into several sub-samples with observations belonging to different…

Statistics Theory · Mathematics 2013-01-25 Boris Brodsky , Boris Darkhovsky

We prove the asymptotic properties of the maximum likelihood estimator (MLE) in time-varying transition probability (TVTP) regime-switching models. This class of models extends the constant regime transition probability in Markov-switching…

Econometrics · Economics 2021-12-06 Chaojun Li , Yan Liu

We study the likelihood ratio test in general mixture models where the base density is parametric, the null is a known fixed mixing distribution, and the alternative is a general mixing distribution supported on a bounded parameter space.…

Statistics Theory · Mathematics 2025-09-09 Yan Zhang , Stanislav Volgushev

We consider here together the inference questions and the change-point problem in Poisson autoregressions (see Tj{\o}stheim, 2012). The conditional mean (or intensity) of the process is involved as a non-linear function of it past values…

Statistics Theory · Mathematics 2013-05-09 Paul Doukhan , William Kengne

This article studies the expected occupancy probabilities on an alphabet. Unlike the standard situation, where observations are assumed to be independent and identically distributed (iid), we assume that they follow a regime switching…

Probability · Mathematics 2020-05-19 Michael Grabchak , Mark Kelbert , Quentin Paris

This paper studies the robustness of quasi-maximum-likelihood (QML) estimation in hidden Markov models (HMMs) when the regime-switching structure is misspecified. Specifically, we examine the case where the true data-generating process…

Econometrics · Economics 2026-01-14 Demian Pouzo , Martin Sola , Zacharias Psaradakis

We consider the problem of testing for a dose-related effect based on a candidate set of (typically nonlinear) dose-response models using likelihood-ratio tests. For the considered models this reduces to assessing whether the slope…

Methodology · Statistics 2015-10-22 Georg Gutjahr , Björn Bornkamp

Mixed effects models are widely used to describe heterogeneity in a population. A crucial issue when adjusting such a model to data consists in identifying fixed and random effects. From a statistical point of view, it remains to test the…

Methodology · Statistics 2017-12-25 Charlotte Baey , Paul-Henry Cournède , Estelle Kuhn

In this paper, in order to test whether changes have occurred in a nonlinear parametric regression, we propose a nonparametric method based on the empirical likelihood. Firstly, we test the null hypothesis of no-change against the…

Statistics Theory · Mathematics 2014-05-22 Gabriela Ciuperca , Zahraa Salloum

Sufficient conditions are provided under which the log-likelihood ratio test statistic fails to have a limiting chi-squared distribution under the null hypothesis when testing between one and two components under a general two-component…

Statistics Theory · Mathematics 2021-11-25 Matthew Fitzpatrick , Michael I. Stewart

Given observations from a stationary time series, permutation tests allow one to construct exactly level $\alpha$ tests under the null hypothesis of an i.i.d. (or, more generally, exchangeable) distribution. On the other hand, when the null…

Statistics Theory · Mathematics 2020-09-09 Joseph P. Romano , Marius A. Tirlea

A Markov-switching observation-driven model is a stochastic process $((S_t,Y_t))_{t \in \mathbb{Z}}$ where $(S_t)_{t \in \mathbb{Z}}$ is an unobserved Markov chain on a finite set and $(Y_t)_{t \in \mathbb{Z}}$ is an observed stochastic…

Econometrics · Economics 2025-12-30 Frederik Krabbe

Markov regime switching models have been widely used in numerous empirical applications in economics and finance. However, the asymptotic distribution of the maximum likelihood estimator (MLE) has not been proven for some empirically…

Statistics Theory · Mathematics 2018-06-29 Hiroyuki Kasahara , Katsumi Shimotsu

Switching ARMA models greatly enhance the standard linear models to the extent that different ARMA model is allowed in a different regime, and the regime switching is typically assumed a Markov chain on the finite states of potential…

Statistics Theory · Mathematics 2007-06-13 Gopal K. Basak , Zhan-Qian Lu

It is an important task in the literature to check whether a fitted autoregressive moving average (ARMA) model is adequate, while the currently used tests may suffer from the size distortion problem when the underlying autoregressive models…

Methodology · Statistics 2022-09-21 Xiaohui Liu , Donghui Fan , Xu Zhang , Catherine C. Liu
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