Structural Break Test

Discussion of models with structural breaks or endogenous switching.
upani
Posts: 55
Joined: Wed Jun 25, 2014 3:31 am

Structural Break Test

Unread post by upani »

Dear All,

If the data series is difference stationary, is it necessary to check whether (If any) unknown structural break is there. In case of my data set the period includes financial recession. How can i do the analysis.

I need your valuable suggestion in this regard.



With sincere regards,
Upananda
TomDoan
Posts: 7814
Joined: Wed Nov 01, 2006 4:36 pm

Re: Structural Break Test

Unread post by TomDoan »

upani wrote:Dear All,

If the data series is difference stationary, is it necessary to check whether (If any) unknown structural break is there. In case of my data set the period includes financial recession. How can i do the analysis.

I need your valuable suggestion in this regard.
"Series" don't have structural breaks. Models (potentially) have structural breaks. Unless you specify a model and the type of break that might be present, it's not possible to suggest how to test for one. Have you looked at Chapter 11 in the User's Guide?
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