Document Type

Discussion Paper

Publication Date

7-1-1988

CFDP Number

877R

CFDP Revision Date

1989-07-01

CFDP Pages

62

Abstract

This paper is concerned with the estimation of covariance matrices in the presence of heteroskedasticity and autocorrelation of unknown forms. Currently available estimators that are designed for this context depend upon the choice of a lag truncation parameter and a weighting scheme. No results are available, however, regarding the choice of a lag truncation parameter for a fixed sample size, regarding data-dependent automatic lag truncation parameters, or regarding the choice of weighing scheme. In consequence, available estimators are not entirely operational and the relative merits of the estimators are unknown.

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