aiStaHau: Conducting a Hausman Test on a Static AIDS Model
Description
Conduct a Hausman test on a static AIDS model and report the result of likelihood ratio test.
Usage
aiStaHau(x, instr, choice = FALSE, ...)
Arguments
x
an object of class aiStaFit from a static AIDS model.
instr
a single time series data as instrument for the expenditure variable in AIDS model.
choice
a logical value of whether to take a difference on the right-hand price and instr variables.
...
additional arguments to be passed.
Value
Return a data frame object with the statistics and p values for the four tests by equation.
daHaudata used in estimating the Hausman test.
formuHauformula for estimating the Hausman test.
regHauregression for the Hausman test.
daFitrevised data with the fitted value of expenditure included.
aiBasethe base static AIDs model estimated.
aiHausthe reestimated static AIDS model using the fitted value of expenditure.
ratioresult of the likelihood ration test for the Hausman test.
Details
Conduct a Hausman test on a static AIDS model and report the result of likelihood ratio test. Note that logarithm is taken on every variable in the auxiliary regression. These variables are the real total expenditure and its lagged value, instrumental variable, and the price variables.
References
Wan, Y., C. Sun, and D.L. Grebner. 2010. Analysis of import demand for wooden beds in the United States. Journal of Agricultural and Applied Economics 42(4):643-658.