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A simple explanation for the non-invariance of a Wald statistic to a reformulation of a null hypothesis

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Author Info
Naorayex K Dastoor () (Department of Economics, University of Alberta)

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Abstract

For a given null hypothesis and its reformulation, the associated Wald statistics are shown to be members of a wider family of statistics where all members are asymptotically equivalent under the null hypothesis. Therefore, the non-invariance of a Wald statistic (to a reformulation of a null hypothesis) is equivalent to using different members of the wider family and, in addition, this non-invariance implies that these members use different estimators of an appropriate variance-covariance matrix.

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File URL: http://www.accessecon.com/pubs/EB/2008/Volume3/EB-08C10010A.pdf
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Publisher Info
Article provided by AccessEcon in its journal Economics Bulletin.

Volume (Year): 3 (2008)
Issue (Month): 62 ()
Pages: 1-10
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Handle: RePEc:ebl:ecbull:v:3:y:2008:i:62:p:1-10

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C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General

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