MISSPECIFICATION IN SIMULTANEOUS SYSTEMS: AN ALTERNATIVE TEST AND ITS APPLICATION TO A MODEL OF THE SHRIMP MARKET

Concern over the effects of public policies based on misspecified econometric models motivates interest in a procedure to test, diagnose, and improve the specification of models that have been estimated with three-stage least squares. A test of system-wide specification based on Hausman's specification test is employed in a test of the a priori restrictions placed on the parameters of a structural model of the U.S. shrimp market. The null hypothesis of proper specification is rejected. After diagnosis via a comparison of unrestricted and restricted reduced forms and respecification, the null hypothesis cannot be rejected.


Issue Date:
1988-12
Publication Type:
Journal Article
PURL Identifier:
http://purl.umn.edu/29267
Published in:
Southern Journal of Agricultural Economics, Volume 20, Number 2
Page range:
65-72
Total Pages:
8




 Record created 2017-04-01, last modified 2017-08-24

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