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Specification and testing of models estimated by quadrature

โœ Scribed by Geert Dhaene; J. M. C. Santos Silva

Publisher
John Wiley and Sons
Year
2010
Tongue
English
Weight
130 KB
Volume
27
Category
Article
ISSN
0883-7252

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โœฆ Synopsis

SUMMARY

This paper proposes a test to check the specification of models with unobserved individual effects integrated out by quadrature and also a simple way of increasing the flexibility of this type of model. The results of a Monte Carlo study and an application using a wellโ€known dataset illustrate the finite sample properties of the proposed methods and their implementation in practice. Copyright ยฉ 2010 John Wiley & Sons, Ltd.

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