An LM test based on generalized residuals for random effects in a nonlinear model

William Greene, Colin McKenzie

Research output: Contribution to journalArticlepeer-review

6 Citations (Scopus)

Abstract

We obtain an LM test for the random effects probit model. In the natural parameterization of the model the necessary derivatives are identically zero under the null hypothesis. After a reparameterization, the feasible LM test is based on generalized residuals.

Original languageEnglish
Pages (from-to)47-50
Number of pages4
JournalEconomics Letters
Volume127
DOIs
Publication statusPublished - 2015 Feb 1

Keywords

  • LM test
  • Panel data
  • Probit
  • Random effects

ASJC Scopus subject areas

  • Finance
  • Economics and Econometrics

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