A Consistent Nonparametric Test for Causality in Quantile



Thm/2 [ J2(Qθ) - J2(Qθ - Ct)]

= Op(CTh-m/2)

=op(1) .

(A.25)


[3] Thm/2 [J3(Qθ)- J3(Qθ -Ct)] = Op(1):

Noting that H3t (5, t, Qθ ) = 0 because of F(Qθ (xj )| Zj ) - θ = 0 for j = t, s, we have

J3(Qθ)-J3(Qθ-CT)

1 ʃ. ʃ. 1    (z -z A

=--1--∑ ∑ ɪ K z-÷- I

T(T -1) ⅛ ⅛ hm  L h )

× {F(Qθ(xt)-Ct |z,)-θ}{F(Qθ(xs)-CtZs)-θ}

1TT1(zzI

= ^~∑ ∑ ∑ mK l^tv^ I CT S (Qθ ( Xt )) S (Qθ ( Xs ))

T(T- 1) t=1 sth Lh )

= CT1S(Q(Xt ))S(Q( X ))f Z(z, )                               (A.26)

T t=1

Thus, we have

EJ3( Qθ ) - J3( Qθ - ' )

1T

≤ ΛCT-EfZ(z■,)

T t=1

≤ ΛCT1 Ef (z-,) + ΛCT1 Ef (z,)-f,(z,)

Tt=1                       Tt=1

1T1T                           2

≤ ΛCT-Efz(Zt) + ΛCT-E{f (Zt)-fz(Zt)}
Tt=1Tt=1

= O(CT2 )                                                            (A.27)

Finally, we have

Th""-[J3(Qθ)- J3(Qθ -Ct)]

= Op(Thm/2CT2)

17



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