Is it different for zeros? Discriminating between models for non-negative data with many zeros
In many economic applications, the variate of interest is non-negative and its distribution is characterized by a mass-point at zero and a long right-tail. Many regression strategies have been proposed to deal with data of this type. Although there has been a long debate in the literature on the appropriateness of different models, formal statistical tests to choose between the competing specifications, or to assess the validity of the preferred model, are not often used in practice. In this paper we propose a novel and simple regression-based specification test that can be used to test these models against each other.
|Date of creation:||12 Jul 2010|
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- Santos Silva, J.M.C. & Tenreyro, Silvana, 2011.
"Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator,"
Elsevier, vol. 112(2), pages 220-222, August.
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- Joao Santos Silva & Silvana Tenreyro, 2009. "Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator," LSE Research Online Documents on Economics 25506, London School of Economics and Political Science, LSE Library.
- Costas Arkolakis & Arnaud Costinot & Andrés Rodríguez-Clare, 2009.
"New Trade Models, Same Old Gains?,"
NBER Working Papers
15628, National Bureau of Economic Research, Inc.
- Joao Santos Silva & Silvana Tenreyro, 2005.
"The Log of Gravity,"
CEP Discussion Papers
dp0701, Centre for Economic Performance, LSE.
- Santos Silva, J.M.C & Tenreyro, Silvana, 2005. "The Log of Gravity," CEPR Discussion Papers 5311, C.E.P.R. Discussion Papers.
- Joao Santos Silva & Silvana Tenreyro, 2005. "The log of gravity," LSE Research Online Documents on Economics 3744, London School of Economics and Political Science, LSE Library.
- J M C Santos Silva, 1996.
"A Score Test for Non-nested Hypotheses with Applications to Discrete Data Models,"
96-28 ISSN 1350-6722, University College London, Department of Economics.
- J. M. C. Santos Silva, 2001. "A score test for non-nested hypotheses with applications to discrete data models," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(5), pages 577-597.
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