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This paper presents and exemplifies results developed for cointegration analysis with state space models by Bauer and Wagner in a series of papers. Unit root processes, cointegration and polynomial cointegration are defined. Based upon these definitions the major part of the paper discusses how...
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decomposition algorithm) that allows us to deconstruct price series into the true efficient price and microstructure noise …
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computationally efficient filtering algorithm to estimate the non-linear model. Calculations are greatly simplified by appropriate … augmentation of the transition equation and exploiting the conditionally linear and Gaussian structure. The algorithm is shown to …
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computationally efficient filtering algorithm to estimate the nonlinear model. The algorithm is shown to be accurate in approximating …
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