Testing non-nested semiparametric models: An application to engel curves specification
AbstractThis paper proposes a test statistic for discriminating between two partly non linear regression models whose parametric components are non-nested. The statistic has the form of a J-test based on a parameter which artificially nests the null and alternative hypotheses. We study in detail the realistic case where all regressors in the nonlinear part are discrete and then no smoothing is required on estimating the nonparametric components. We also consider the general case where continuous and discrete regressors are present. The performance of the test in finite samples is discussed in the context of some Monte Carlo experiments. The test is well motivated for specification testing of Engel curves. We provide an application using data from the 1980 Spanish Expenditure Survey.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie) in its series Working Papers. Serie AD with number 1996-21.
Length: 40 pages
Date of creation: Dec 1996
Date of revision:
Publication status: Published by Ivie
Engel curves; non-nested models; semiparametric estimation;
Other versions of this item:
- Miguel A. Delgado & Juan Mora, 1998. "Testing non-nested semiparametric models: an application to Engel curves specification," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 13(2), pages 145-162.
You can help add them by filling out this form.
reading list or among the top items on IDEAS.Access and download statisticsgeneral information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Departamento de Edición).
If references are entirely missing, you can add them using this form.