Learn R Programming

fUnitRoots (version 290.75)

UnitrootUrcaInterface: Unit Root Time Series Tests

Description

A collection and description of functions for unit root testing. This is a Rmetrics conform interface to the unitroot tests implemented by B. Pfaff available through the contributed package "urca". Added functions based on the 'urca' package include: ll{ urdfTest Augmented Dickey--Fuller test for unit roots, urersTest Elliott--Rothenberg--Stock test for unit roots, urkpssTest KPSS unit root test for stationarity, urppTest Phillips--Perron test for unit roots, urspTest Schmidt--Phillips test for unit roots, urzaTest Zivot--Andrews test for unit roots. } Note, that the contributed R package urca is required!

Usage

urdfTest(x, lags = 1, type = c("nc", "c", "ct"), doplot = TRUE)
urersTest(x, type = c("DF-GLS", "P-test"), model = c("constant", "trend"),
    lag.max = 4, doplot = TRUE)
urkpssTest(x, type = c("mu", "tau"), lags = c("short", "long", "nil"),
    use.lag = NULL, doplot = TRUE)
urppTest(x, type = c("Z-alpha", "Z-tau"), model = c("constant", "trend"),
    lags = c("short", "long"), use.lag = NULL, doplot = TRUE)
urspTest(x, type = c("tau", "rho"), pol.deg = c(1, 2, 3, 4),
    signif = c(0.01, 0.05, 0.1), doplot = TRUE)
urzaTest(x, model = c("intercept", "trend", "both"), lag, doplot = TRUE)

Arguments

doplot
[ur*Test] - a logical flag, by default TRUE. Should a diagnostical plot be displayed?
lag.max
[urersTest] - the maximum numbers of lags used for testing of a decent lag truncation for the "P-test", BIC used, or the maximum number of lagged differences to be included in the test regression for "DF-GLS"
lag
[urzaTest] - the highest number of lagged endogenous differenced variables to be included in the test regression.
lags
[urkpssTest][urppTest] - the maximum number of lags used for error term correction.
model
[urersTest] - a character string dennoting the deterministic model used for detrending, either "constant", the default, or "trend". [urppTest] - a character string which determines the deterministic part in
pol.deg
[urspTest] - the polynomial degree in the test regression.
signif
[urspTest] - the significance level for the critical value of the test statistic.
type
[urkpssTest] - a character string which denotes the type of deterministic part, either "mu", the default, or "tau". [urppTest] - a character string which specifies the test type, either "Z-alpha"
use.lag
[urkpssTest] - a character string specifying the number of lags. Allowed arguments are lags=c("short", "long", "nil"), for more information see the details section. [urppTest] - Use of a different lag number, specified by t
x
a numeric vector or time series object.

Value

  • All tests return an object of class "fHTEST" with the following slots:
  • @callthe function call.
  • @dataa data frame with the input data.
  • @data.namea character string giving the name of the data frame.
  • @testa list object which holds the output of the underlying test function.
  • @titlea character string with the name of the test.
  • @descriptiona character string with a brief description of the test.
  • The entries of the @test slot include the following components:
  • $statisticthe value of the test statistic.
  • $parameterthe lag order.
  • $p.valuethe p-value of the test.
  • $methoda character string indicating what type of test was performed.
  • $data.namea character string giving the name of the data.
  • $alternativea character string describing the alternative hypothesis.
  • $namethe name of the underlying function, which may be wrapped.
  • $outputadditional test results to be printed.

Details

Unit Root Tests from Berhard Pfaff's "urca" Package: Elliott--Rothenberg--Stock Test for Unit Roots: To improve the power of the unit root test, Elliot, Rothenberg and Stock proposed a local to unity detrending of the time series. ERS developed a feasible point optimal test, "P-test", which takes serial correlation of the error term into account. The second test type is the "DF-GLS" test, which is an ADF-type test applied to the detrended data without intercept. Critical values for this test are taken from MacKinnon in case of model="constant" and else from Table 1 of Elliot, Rothenberg and Stock. [urca:ur.ers] KPSS Test for Unit Roots: Performs the KPSS unit root test, where the Null hypothesis is stationarity. The test types specify as deterministic component either a constant "mu" or a constant with linear trend "tau". lags="short" sets the number of lags to root 4 of [4 times (n/100), whereas lags="long" sets the number of lags to root 4 of [12 times (n/100)]. If lags="nil" is choosen, then no error correction is made. Furthermore, one can specify a different number of maximum lags by setting use.lag accordingly. [urca:ur.kpss] Phillips--Perron Test for Unit Roots: Performs the Phillips and Perron unit root test. Beside the Z statistics Z-alpha and Z-tau, the Z statistics for the deterministic part of the test regression are computed, too. For correction of the error term a Bartlett window is used. [urca:ur.pp] Schmidt--Phillips Test for Unit Roots: Performs the Schmidt and Phillips unit root test, where under the Null and Alternative Hypothesis the coefficients of the deterministic variables are included. Two test types are available: the "rho-test" and the "tau-test". Both tests are extracted from the LM principle. [urca:ur.sp] Zivot--Andrews Test for Unit Roots: Performs the Zivot and Andrews unit root test, which allows a break at an unknown point in either the intercept, the linear trend or in both. This test is based upon the recursive estimation of a test regression. The test statistic is defined as the minimum t-statistic of the coeffcient of the lagged endogenous variable. [urca:ur.za]

References

Banerjee A., Dolado J.J., Galbraith J.W., Hendry D.F. (1993); Cointegration, Error Correction, and the Econometric Analysis of Non-Stationary Data, Oxford University Press, Oxford. Dickey, D.A., Fuller, W.A. (1979); Distribution of the estimators for autoregressive time series with a unit root, Journal of the American Statistical Association 74, 427--431. Kwiatkowski D., Phillips P.C.B, Schmidt P., Shin Y. (1992); Testing the Null Hypothesis of Stationarity against the Alternative of a Unit Root, Journal of Econometrics 54, 159--178. Perron P. (1988); Trends and Random Walks in Macroeconomic Time Series, Journal of Economic Dynamics and Control 12, 297--332. Phillips P.C.B., Perron P. (1988); Testing for a unit root in time series regression, Biometrika 75, 335--346. Said S.E., Dickey D.A. (1984); Testing for Unit Roots in Autoregressive-Moving Average Models of Unknown Order, Biometrika 71, 599--607. Schwert G.W. (1989); Tests for Unit Roots: A Monte Carlo Investigation, Journal of Business and Economic Statistics 2, 147--159.

Examples

Run this code
## Time Series 
   # A time series which contains no unit-root:
   x = rnorm(1000)  
   # A time series which contains a unit-root:
   y = cumsum(c(0, x))
   
## ERS Test:
   if (require(urca)) {
   urersTest(x)
   urersTest(y)
   }

Run the code above in your browser using DataLab