Monitoring Structural Change in Vector Error Correction Models

Projektleitung: Leopold Sögner
Projektteam: Ines Fortin, Masoud Abdollahi Mobarakeh
Laufzeit: April 2022 – März 2025
Finanzierung: Oesterreichische Nationalbank (OeNB) Jubiläumsfonds - Projektnummer 18766


Details nur auf Englisch.

This research project develops and applies econometric tools to perform online break-point detection (monitoring) in a Johansen (1995)-type vector error correction model. To monitor structural changes the break-point detection procedures of Seo (1998) and Hansen and Johansen (1999) are planned to be adapted to the monitoring case. The monitoring tools are applied to investigate the stability of money demand and some arbitrage parities discussed in finance literature. The tools are made available in an R-package.