p values and alternative boundaries for CUSUM tests

Achim Zeileis

Publication: Working/Discussion PaperWU Working Paper

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Abstract

Firstly rather accurate approximations to the p value functions of the common Standard CUSUM test and the OLS-based CUSUM test for structural change are derived. Secondly alternative boundaries for both tests are suggested and their properties are examined by simulation of expected p values. It turns out that the power of the OLS-based CUSUM test for early and late structural changes can be improved, whereas this weakness of the Standard CUSUM test cannot be repaired by the new boundaries.

Publication series

SeriesWorking Papers SFB "Adaptive Information Systems and Modelling in Economics and Management Science"
Number78

WU Working Paper Series

  • Working Papers SFB \Adaptive Information Systems and Modelling in Economics and Management Science\

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