Bootstrap Methods for Markov Processes.

The block bootstrap is the best known bootstrap method for time-series data when the analyst does not have a parametric model that reduces the data generation process to simple random sampling. However, the errors made by the block bootstrap converge to zero only slightly faster than those made by f...

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Published in:Econometrica Vol. 71; no. 4; pp. 1049 - 1083
Main Author: Horowitz, Joel L.
Format: Article
Published: Wiley-Blackwell July 2003
Subjects:
Online Access:View this record in EBSCOhost
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      dt: July 2003
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      pub: Wiley-Blackwell
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        513142071
        10.1111/1468-0262.00439
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        atl: Bootstrap Methods for Markov Processes.
      aug:
        au: Horowitz, Joel L.
      su:
        Markov processes
        Statistical bootstrapping
        Edgeworth expansions
        Time series analysis
      sug:
        subj:
          Markov processes
          Statistical bootstrapping
          Edgeworth expansions
          Time series analysis
      ab: The block bootstrap is the best known bootstrap method for time-series data when the analyst does not have a parametric model that reduces the data generation process to simple random sampling. However, the errors made by the block bootstrap converge to zero only slightly faster than those made by first-order asymptotic approximations. This paper describes a bootstrap procedure for data that are generated by a Markov process or a process that can be approximated by a Markov process with sufficient accuracy. The procedure is based on estimating the Markov transition density nonparametrically. Bootstrap samples are obtained by sampling the process implied by the estimated transition density. Conditions are given under which the errors made by the Markov bootstrap converge to zero more rapidly than those made by the block bootstrap. Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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