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Power in non-nested models: a comparative study

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  • Maria-Isabel Ayuda
  • Antonio Aznar

Abstract

The main objective of this letter is to compare two concepts of the power of a test developed in the literature on non-nested hypotheses. Using Monte Carlo techniques it is shown that both definitions of power are asymptotically equivalent, but for small samples they differ in some cases very dramatically.

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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal Applied Economics Letters.

Volume (Year): 7 (2000)
Issue (Month): 7 ()
Pages: 483-486

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Handle: RePEc:taf:apeclt:v:7:y:2000:i:7:p:483-486

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