英语论文网

Included observations: 170

There is a negligible change in the results after including the countries following a pegged exchange rate policy. The sign of the coefficients have not changed and all the variables except political stability are not statistically significant.

5 Heteroscedasticity异议

When the variance of each disturbance term ui conditional on the chosen values of the explanatory variables, is not constant and is related to the explanatory variable there is presence of heteroscedasticity. It plays no part in the determination of unbiasedness of the estimator & the estimator remains consistent even in the presence of heteroscedasticity.

The estimator remains unbiased and consistent in the presence of heteroscedasticity but it is no longer an efficient estimator. This means that it does not have a minimum variance.

To test for heteroscedasticity i have conducted the white test. Following are the results for white test

To conduct white test, we first estimate the regression & obtain the residuals. The residuals are then regressed on the original regressors, their squared values, and the cross products of the regressors. The chi-square value obtained from the test is not statistically significant. This implies that we accept the null hypothesis that there is no heteroscedasticity.

White test can also be used as a test of specification error. It has been argued that if

there are no cross-product terms present in the White test procedure, then it is a

test of pure heteroscedasticity. If cross-product terms are present, then it is

a test of both heteroscedasticity and misspecification bias. (gujrati pg 414)

As the chi-square value obtained from the test is not significant, there is no heteroscedasticity or misspecification error.

6 Ramsey Reset test拉姆齐复位测试

Ramsey proposed a general test for misspecification error called reset test.(gujrati pg521).

The specification errors considered are omitted variables, incorrect functional form, simultaneous equation problems and heteroskedasticity. (Tests for Specification Errors in Classical Linear Least-squares Regression Analysis, pg2)

RESET tests the significance of a regression of the residuals on a linear function of vectors.(Tests for Specification Errors in Classical Linear Least-squares Regression Analysis, pg2)

In case of a linear function, if the residuals show a pattern in which their mean changes systematically with Ŷ it would mean that if we introduce Ŷ in some form of regressors the r squared should increase. if the increase is statistically signi本论文由英语论文网提供整理，提供论文代写，英语论文代写，代写论文，代写英语论文，代写留学生论文，代写英文论文，留学生论文代写相关核心关键词搜索。