# pbltest

##### Baltagi and Li Serial Dependence Test For Random Effects Models

BALT:LI:95;textualplm's Lagrange multiplier test for AR(1) or MA(1) idiosyncratic errors in panel models with random effects.

- Keywords
- htest

##### Usage

`pbltest(x, ...)`# S3 method for formula
pbltest(x, data, alternative = c("twosided", "onesided"), index = NULL, ...)

# S3 method for plm
pbltest(x, alternative = c("twosided", "onesided"), ...)

##### Arguments

- x
a model formula or an estimated random--effects model of class

`plm`

,- …
further arguments.

- data
for the formula interface only: a

`data.frame`

,- alternative
one of

`"twosided"`

,`"onesided"`

. Selects either \(H_A: \rho \neq 0\) or \(H_A: \rho = 0\) (i.e., the Normal or the Chi-squared version of the test),- index
the index of the

`data.frame`

,

##### Details

This is a Lagrange multiplier test for the null of no serial
correlation, against the alternative of either an AR(1) or an MA(1)
process, in the idiosyncratic component of the error term in a
random effects panel model (as the analytical expression of the
test turns out to be the same under both alternatives,
@see @BALT:LI:95 and @BALT:LI:97plm. The
`alternative`

argument, defaulting to `twosided`

, allows testing
for positive serial correlation only, if set to `onesided`

.

##### Value

An object of class `"htest"`

.

##### References

BALT:LI:95plm

BALT:LI:97plm

##### See Also

`pdwtest()`

, `bgtest`

,
`pbsytest()`

, `pwartest()`

and
`pwfdtest()`

for other serial correlation tests for
panel models.

##### Examples

```
# NOT RUN {
data("Grunfeld", package = "plm")
# formula interface
pbltest(inv ~ value + capital, data = Grunfeld)
# plm interface
re_mod <- plm(inv ~ value + capital, data = Grunfeld, model = "random")
pbltest(re_mod)
pbltest(re_mod, alternative = "onesided")
# }
```

*Documentation reproduced from package plm, version 2.2-5, License: GPL (>= 2)*