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Bai Perron and Trim factor

Posted: Fri Mar 25, 2016 1:55 am
by strypste
Hi there

I wanted to perform a Bai and Perron test with a trimming parameter of 25 and a maximum number of breaks equal to 5. My sample is 330 observations.

I get the following error message:

Invalid specification for the maximum number of breaks given the sample size and trimming percentage (must be less than or equal to 2)

With a trimming of 20 is also does not work. It only works if I use a trimming of 15 or lower.

Could somebody explain this or point me to some documentation about this?

Best
s

(using EViews 9)

Re: Bai Perron and Trim factor

Posted: Fri Mar 25, 2016 12:22 pm
by trubador
Trimming percentage implicitly determines the minimum segment length permitted when constructing a test:
http://www.eviews.com/help/helpintro.ht ... .5.html%23