TY  - JOUR
T1  - A RESEARCH STUDY OF NONLINEARITY EXPERIENCING IN THE RATE OF CURRENT ACCOUNT DEFICIT TO THE BULGARIAN HEALTH AND CARE NATIONAL PRODUCT
AU  - Terziev, Venelin
AU  - Petkova Georgieva, Stoyanka
PY  - 2019
DA  - September
DO  - 10.18769/ijasos.592334
JF  - IJASOS- International E-journal of Advances in Social Sciences
JO  - IJASOS
PB  - OCERINT International Organization Center of Academic Research
WT  - DergiPark
SN  - 2411-183X
SP  - 685
EP  - 693
VL  - 5
IS  - 14
LA  - en
AB  - called Regime Switching Models: TAR, SETAR, MarkovSwitching Model, etc. Usually, the behavior of time series exhibit breaks isassociated with structural changes in government policy or financial crises. Inthe present research it is used as an example the calculated data about therate of current account deficit to the Bulgarian Health and Care NationalProduct. The series are hard to be modeling because of the structural change ofthe government policy about the Bulgarian Health and Care National Product. Thebasic hypothesis that is tested in the conducted research is that when there isa case of changes in the time series in their structure it is impossible theprinciples of linearity assumption to be applied. In the traditionaleconometrics as a science the linearity is an important assumption but thereare practical evidences in which most of the time series do not provide thisassumption. These cases of such time series behavior are called nonlinearityseries. It is important to test the linearity assumption because of thediffering between the ways of modeling the series in the case of linearity andnonlinearity using the date of the rate of current account deficit to theBulgarian Health and Care National Product. If any series do not provide thelinearity assumption and also have change in the structure then the case can bemodeling with TAR, SETAR or Markov Switching Model. We provided the research byquestioning whether there is nonlinearity in the rate of proportion of currentaccount deficit to the Bulgarian Health and Care National Product and it isexperienced with four nonlinearity tests: Kaplan Test, McLeod-Li test, BDS Testand Tzay Test.
KW  - Nonlinearity Experiencing
KW  - Kaplan Test
KW  - McLeod-Li test
KW  - BDS Test and Tzay Test
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UR  - https://doi.org/10.18769/ijasos.592334
L1  - https://dergipark.org.tr/en/download/article-file/800406
ER  -