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Tests for unbalanced error-components models under local misspecification

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Author Info
Walter Sosa-Escudero () (Department of Economics, Universidad de San Andres)
Anil K. Bera (Department of Economics, University of Illinois at Urbana-Champaign)

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Abstract

This paper derives unbalanced versions of the test statistics for first- order serial correlation and random individual effects summarized in Sosa-Escudero and Bera (2001, Stata Technical Bulletin Reprints, vol. 10, pp. 307–311), and up- dates their xttest1 routine. The derived test statistics should be useful for applied researchers faced with the increasing availability of panel information where not every individual or country is observed for the full time span. The test statis- tics proposed here are based on ordinary least-squares residuals and hence are computationally very simple. Copyright 2008 by StataCorp LP.

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Publisher Info
Article provided by StataCorp LP in its journal Stata Journal.

Volume (Year): 8 (2008)
Issue (Month): 1 (February)
Pages: 68-78
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Handle: RePEc:tsj:stataj:v:8:y:2008:i:1:p:68-78

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Related research
Keywords: xttest1; error-components model; unbalanced panel data; testing; misspecification;

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  1. Lars P. Feld & Jost Henrich Heckemeyer, 2009. "FDI and Taxation: A Meta-Study," CESifo Working Paper Series CESifo Working Paper No. , CESifo Group Munich. [Downloadable!]
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This page was last updated on 2009-12-14.


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