Publication Type

Journal Article

Version

publishedVersion

Publication Date

1-2005

Abstract

This paper proposes a simple consistent non-parametric test of conditional symmetry based on the principle of characteristic functions. The test statistic is shown to be asymptotically normal under the null hypothesis of conditional symmetry and consistent against any conditional asymmetric distributions. We also study the power against local alternatives, propose a bootstrap version of the test, and conduct a small Monte Carlo simulation to evaluate the finite-sample performance of the test.

Keywords

Bootstrap; Conditional symmetry; Characteristic function; Test; U-statistics.

Discipline

Econometrics

Research Areas

Econometrics

Publication

Annals of Economics and Finance

Volume

6

First Page

251

Last Page

261

ISSN

1529-7373

Publisher

Peking University Press

Included in

Econometrics Commons

Share

COinS