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Multiple regression model averaging and the focused information criterion with an application to portfolio choice

Abstract:

We consider multiple regression (MR) model averaging using the Focused Informati on Criterion (FIC). Our approach is motivated by the problem of implementing a mean-variance portfolio choice rule. The usual approach is to estimate parameters ignoring the intention to use them in portfolio choice. We develop an estimation method that focuses on the trading rule of interest. Asymptotic distributions of submodel estimators in the MR case are derived using a localization framework. The localizati...

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Publication status:
Published
Peer review status:
Peer reviewed

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Publisher copy:
10.1080/07350015.2017.1383262

Authors


More by this author
Institution:
University of Oxford
Division:
Social Sciences Division
Department:
Economics
Oxford college:
St Edmund Hall
Role:
Author
More by this author
Institution:
University of Oxford
Division:
SSD
Department:
Economics
Oxford college:
St Edmund Hall
Role:
Author
Publisher:
Taylor and Francis Publisher's website
Journal:
Journal of Business and Economic Statistics Journal website
Volume:
37
Issue:
3
Pages:
506-516
Publication date:
2018-05-22
Acceptance date:
2017-09-14
DOI:
EISSN:
1537-2707
ISSN:
0735-0015
Pubs id:
pubs:735420
UUID:
uuid:cb866848-c750-48ea-9ed4-c51ab87f63af
Local pid:
pubs:735420
Source identifiers:
735420
Deposit date:
2017-10-13

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