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MSTest : an R-Package for testing Markov switching models / Gabriel Rodriguez Rondon, Jean-Marie Dufour.FB3-5/2026-7E-PDF

"We present the R package MSTest, which implements hypothesis testing procedures to determine the number of regimes in Markov switching models. These models have wide ranging applications in economics, finance, and many other fields. MSTest provides several testing frameworks, including Monte Carlo likelihood ratio tests (Rodriguez-Rondon and Dufour (2025)), moment-based tests (Dufour and Luger (2017)), parameter stability tests (Carrasco et al. (2014)), and classical likelihood ratio procedures (Hansen (1992)). In addition, the package offers tools for simulating and estimating univariate and multivariate Markov switching and hidden Markov models using either the expectation–maximization algorithm or maximum likelihood estimation. The functionality of the package is demonstrated through simulation-based examples"--Abstract.

Permanent link to this Catalogue record:
publications.gc.ca/pub?id=9.961240&sl=0

Publication information
Department/Agency
  • Bank of Canada, issuing body.
TitleMSTest : an R-Package for testing Markov switching models / Gabriel Rodriguez Rondon, Jean-Marie Dufour.
Series title
  • Staff working paper = Document de travail du personnel, 1701-9397 ; 2026-7
Publication typeMonograph - View Master Record
Language[English]
FormatDigital text
Electronic document
Note(s)
  • Cover title.
  • "December 16, 2025."
  • "JEL codes: C12, C15, C22, C52."
  • Includes bibliographical references (pages 44-50).
  • Includes abstracts in English and French.
Publishing information
  • [Ottawa] : Bank of Canada = Banque du Canada, March 4, 2026.
  • ©2026
Author / Contributor
  • Rodriguez Rondon, Gabriel, author.
Description1 online resource (50 pages) : graphs.
Catalogue number
  • FB3-5/2026-7E-PDF
Subject terms
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