Yet Another Blog in Statistical Computing

I can calculate the motion of heavenly bodies but not the madness of people. -Isaac Newton

LM Test for Model Specification

The exercise below is an attempt to replicate the statistical result of Table II in “Econometric Methods for Fractional Response Variable with An Application to 401K Plan Participation Rates” by L. Papke and J. Wooldridge (1996).

1) Simple LM Test

2) Robust LM Test

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Written by statcompute

April 8, 2012 at 2:43 am

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