Sentence examples for parameter instability from inspiring English sources

In this paper, we show that tests designed for a threshold alternative have also power against parameter instability originating from Structural Change or Markov-switching models.

Therefore, it appears that testing the null of parameter stability against a threshold alternative is a robust way to detect parameter instability in economic and financial time series.

Capitalizing on an event study method that incorporates an econometric technique designed to handle parameter instability and model uncertainty, we assess the news-implied price response to 29 hand-collected announcements about the EU ETS supply schedule.

One potential drawback of this approach is, as mentioned before, the parameter instability on the estimated prices of characteristics.

They perform standard hedonic regressions, proposing two different smoothing techniques to deal with the parameter instability caused by collinearity.

The first type of evidence is based on tests of parameter instability over the period 1999Q1 2015Q4.

While Eq. 1 represents a very naïve descriptive model, it provides prima facie evidence in favour of parameter instabilities in the four major euro area countries.

To this end, a couple of parameters was selected and the sensitivity of each parameter to instability was evaluated including volume ratios between main and post chambers, oxidizer mass flow rates, and solid fuel types.

For certain values of these parameters, an instability will propagate down the rod, and it will beat spontaneously1.

In this study, a numerical technique was developed to study the effect of processing parameters on instability of the steel during five passes hot bar rolling process.

Following a novel non-dimensionalization, it is shown analytically that the model can exhibit, at experimentally realistic parameter values, instabilities associated with coupling between the valve and acoustic waves in the pipe.