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A TEST FOR INDEPENDENCE BASED ON THE CORRELATION DIMENSION

W. A. Brock, W. D. Dechert

1994ennonlineartime seriesspecificationtestschaos

Abstract

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This paper presents a test of independence that can be applied to the estimated residuals of any time series model that can be transformed into a model driven by independent and identically distributed errors. The first order asymptotic distribution of the test statistic is independent of estimation error provided that the parameters of the model under test can be estimated √n–consistently. Because of this, our method can be used as a model selection tool and as a specification test. Widely used software written by Dechert and LeBaron can be used to implement the test. Also, this software is fast enough that the null distribution of our test statistic can be estimated with bootstrap methods. Our method can be viewed as a nonlinear analog of the Box–Pierce Q statistic used in ARIMA analysis.

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Cite This Work

@article{691d4247-a953-4f8a-a473-4d220a52488d,
  title={A TEST FOR INDEPENDENCE BASED ON THE CORRELATION DIMENSION},
  author={W. A. Brock and W. D. Dechert},
  year={1994},
  language={en}
}
TY  - JOUR
TI  - A TEST FOR INDEPENDENCE BASED ON THE CORRELATION DIMENSION
AU  - W. A. Brock
AU  - W. D. Dechert
PY  - 1994
LA  - en
ER  -

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